Gross Margin % is calculated as gross profit divided by its revenue. Tullow Oil's Gross Profit for the
six
months ended in Dec. 2023 was $414 Mil. Tullow Oil's Revenue for the
six
months ended in Dec. 2023 was $857 Mil. Therefore, Tullow Oil's Gross Margin % for the quarter that ended in Dec. 2023 was 48.25%.
The historical rank and industry rank for Tullow Oil's Gross Margin % or its related term are showing as below:
TUWOY'
s Gross Margin % Range Over the Past 10 Years
Min: 28.83 Med: 44.68 Max: 60.88
Current: 46.81
During the past 13 years, the highestGross Margin % of Tullow Oil was 60.88%. The lowest was 28.83%. And the median was 44.68%.
TUWOY's Gross Margin % is ranked better than 71.71% of 926
companies
in the Oil & Gas industry
Industry Median: 27.905
vs TUWOY: 46.81
Tullow Oil had a gross margin of 48.25% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tullow Oil was 4.40% per year.
Tullow Oil Gross Margin % Historical Data
The historical data trend for Tullow Oil'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.
Competitive Comparison of Tullow Oil's Gross Margin %
For the Oil & Gas E&P subindustry, Tullow Oil'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.
Tullow Oil's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Tullow Oil's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tullow Oil's Gross Margin % falls into.
* 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.
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
Tullow Oil had a gross margin of 48.25% 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.
Tullow Oil Gross Margin % Related Terms
Thank you for viewing the detailed overview of Tullow Oil's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tullow Oil PLC is an independent oil and gas exploration and production company. The company conducts exploration, appraisal, and development activities in African and Atlantic regions. The majority of revenue is derived from West African assets, with a focus in offshore fields. Assets used in oil and gas production are acquired through licenses. Tullow depends on seismic and geophysical data to assess potential oil in its fields. The Group's reportable segment are Ghana, Non-operated, Kenya and Exploration. Traditionally, the company has paid the host government several taxes as well as land rentals, training, and ongoing license costs to operate in its primary regions.
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