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Telstra Group (Telstra Group) Gross Margin % : 62.45% (As of Dec. 2023)


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What is Telstra Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Telstra Group's Gross Profit for the six months ended in Dec. 2023 was $4,686 Mil. Telstra Group's Revenue for the six months ended in Dec. 2023 was $7,503 Mil. Therefore, Telstra Group's Gross Margin % for the quarter that ended in Dec. 2023 was 62.45%.

Warning Sign:

Telstra Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.4%.


The historical rank and industry rank for Telstra Group's Gross Margin % or its related term are showing as below:

TTRAF' s Gross Margin % Range Over the Past 10 Years
Min: 60   Med: 65.08   Max: 74.14
Current: 62.13


During the past 13 years, the highest Gross Margin % of Telstra Group was 74.14%. The lowest was 60.00%. And the median was 65.08%.

TTRAF's Gross Margin % is ranked better than
69.21% of 354 companies
in the Telecommunication Services industry
Industry Median: 48.97 vs TTRAF: 62.13

Telstra Group had a gross margin of 62.45% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Telstra Group was -1.40% per year.


Telstra Group Gross Margin % Historical Data

The historical data trend for Telstra Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Telstra Group Gross Margin % Chart

Telstra Group Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 63.82 60.00 60.39 60.67 61.95

Telstra Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 59.81 61.51 62.09 61.80 62.45

Competitive Comparison of Telstra Group's Gross Margin %

For the Telecom Services subindustry, Telstra Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Telstra Group's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telstra Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Telstra Group's Gross Margin % falls into.



Telstra Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Telstra Group's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=9298 / 15010.067
=(Revenue - Cost of Goods Sold) / Revenue
=(15010.067 - 5712.08) / 15010.067
=61.95 %

Telstra Group's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=4686.1 / 7503.347
=(Revenue - Cost of Goods Sold) / Revenue
=(7503.347 - 2817.269) / 7503.347
=62.45 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Telstra Group  (OTCPK:TTRAF) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Telstra Group had a gross margin of 62.45% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Telstra Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Telstra Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Telstra Group (Telstra Group) Business Description

Traded in Other Exchanges
Address
242 Exhibition Street, Level 41, Melbourne, VIC, AUS, 3000
Telstra is Australia's biggest telecommunications group, with material market shares in voice, mobile, data and internet, spanning retail, corporate and wholesale segments. Its fixed-line copper network will gradually be wound down as the government-owned National Broadband Network rolls out to all Australian households, but the group will be compensated accordingly. Investments into network applications and services, media, technology and overseas are being made to replace the expected lost fixed-line earnings longer term, while continuing cost-cuts are also critical.

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