Telefonica Brasil (Telefonica Brasil) Gross Margin %

: 43.08% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Telefonica Brasil's Gross Profit for the three months ended in Dec. 2023 was $1,190 Mil. Telefonica Brasil's Revenue for the three months ended in Dec. 2023 was $2,762 Mil. Therefore, Telefonica Brasil's Gross Margin % for the quarter that ended in Dec. 2023 was 43.08%.

Warning Sign:

Telefonica Brasil SA gross margin has been in long-term decline. The average rate of decline per year is -3.9%.

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

VIV' s Gross Margin % Range Over the Past 10 Years
Min: 42.9 Med: 49.72 Max: 53.08
Current: 43.62

During the past 13 years, the highest Gross Margin % of Telefonica Brasil was 53.08%. The lowest was 42.90%. And the median was 49.72%.

VIV's Gross Margin % is ranked worse than
56.09% of 353 companies
in the Telecommunication Services industry
Industry Median: 48.92 vs VIV: 43.62

Telefonica Brasil had a gross margin of 43.08% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Telefonica Brasil was -3.90% per year.

Telefonica Brasil Gross Margin % Historical Data

The historical data trend for Telefonica Brasil'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.

Telefonica Brasil Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

49.94

47.38

43.72

42.90

43.54

Telefonica Brasil Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
Gross Margin %																42.21	42.70	44.67	43.16	43.08

Competitive Comparison

For the Telecom Services subindustry, Telefonica Brasil'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.

Telefonica Brasil Gross Margin % Distribution

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

* The bar in red indicates where Telefonica Brasil's Gross Margin % falls into.

Telefonica Brasil Gross Margin % Calculation

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

Telefonica Brasil's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	4629.7	/	10633.118
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10633.118 - 6003.388)	/	10633.118
	=	43.54 %

Telefonica Brasil'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 )
	=	1189.9	/	2762.302
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2762.302 - 1572.426)	/	2762.302
	=	43.08 %

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.

Telefonica Brasil (NYSE:VIV) 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

Telefonica Brasil had a gross margin of 43.08% 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.

Telefonica Brasil Gross Margin % Related Terms

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Telefonica Brasil (Telefonica Brasil) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telefonica Brasil SA (NYSE:VIV) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TSPA:Germany VIVT3:Brazil VIV:Argentina

Address

Avenida Engenheiro Luis Carlos Berrini, 1376, 32nd Floor, Sao Paulo, SP, BRA, 04571-936

Website

https://www.telefonica.com.br

Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 98 million customers, equal to about 40% market share. The firm is strongest in the postpaid business, where it has 60 million customers, about 42% share of this market. It is the incumbent fixed-line telephone operator in Sao Paulo state and, following the acquisition of GVT, the owner of an extensive fiber network across the country. The firm provides internet access to 6 million households on this network. Following its parent Telefonica's footsteps, Vivo is cross-selling fixed-line and wireless services as a converged offering. The firm also sells pay-tv services to its fixed-line customers.