The historical rank and industry rank for WGL Holdings's Gross Margin % or its related term are showing as below:
WGL's Gross Margin % is not ranked *
in the Utilities - Regulated industry.
Industry Median: 28.6 * Ranked among companies with meaningful Gross Margin % only.
WGL Holdings had a gross margin of 32.71% for the quarter that ended in Mar. 2018 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for WGL Holdings was 0.00% per year.
WGL Holdings Gross Margin % Historical Data
The historical data trend for WGL Holdings'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 WGL Holdings's Gross Margin %
For the Utilities - Regulated Gas subindustry, WGL Holdings'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.
WGL Holdings's Gross Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, WGL Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where WGL Holdings'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
WGL Holdings had a gross margin of 32.71% for the quarter that ended in Mar. 2018 => Competition eroding margins
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.
WGL Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of WGL Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
WGL Holdings' primary operating segment, Washington Gas Light, is a regulated gas distribution utility. This segment serves about 1.1 million customers in Maryland, Virginia, and the Washington, D.C., metro area. The nonregulated energy marketing segment buys and resells natural gas and electricity in competitive markets, in addition to designing, building, and operating energy systems including solar installations. WGL is signed on to some sizable midstream pipeline projects and angles to expand this business around its utility footprint.
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