Market Cap : 5.25 B | Enterprise Value : 10.84 B | P/E (TTM) : 11.83 | P/B : 1.71 |
---|
PAG has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
PAG has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Penske Automotive Group's gross profit for the three months ended in Sep. 2020 was $957 Mil. Penske Automotive Group's gross profit for the trailing twelve months (TTM) ended in Sep. 2020 was $3,153 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Penske Automotive Group's gross profit for the three months ended in Sep. 2020 was $957 Mil. Penske Automotive Group's Revenue for the three months ended in Sep. 2020 was $5,972 Mil. Therefore, Penske Automotive Group's Gross Margin % for the quarter that ended in Sep. 2020 was 16.02%.
Penske Automotive Group had a gross margin of 16.02% for the quarter that ended in Sep. 2020 => No sustainable competitive advantage
During the past 13 years, the highest Gross Margin % of Penske Automotive Group was 15.94%. The lowest was 14.75%. And the median was 15.03%.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where Penske Automotive Group's Gross Profit falls into.
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Penske Automotive Group's Gross Profit for the fiscal year that ended in Dec. 2019 is calculated as
Gross Profit (A: Dec. 2019 ) | = | Revenue | - | Cost of Goods Sold |
= | 23179.4 | - | 19723.9 | |
= | 3,456 |
Penske Automotive Group's Gross Profit for the quarter that ended in Sep. 2020 is calculated as
Gross Profit (Q: Sep. 2020 ) | = | Revenue | - | Cost of Goods Sold |
= | 5971.6 | - | 5015.1 | |
= | 957 |
Gross Profit for the trailing twelve months (TTM) ended in Sep. 2020 was 866.5 (Dec. 2019 ) + 776.7 (Mar. 2020 ) + 552.9 (Jun. 2020 ) + 956.5 (Sep. 2020 ) = $3,153 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Penske Automotive Group's Gross Margin % for the quarter that ended in Sep. 2020 is calculated as
Gross Margin % (Q: Sep. 2020 ) | = | Gross Profit (Q: Sep. 2020 ) | / | Revenue (Q: Sep. 2020 ) |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | 957 | / | 5971.6 | |
= | 16.02 % |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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
Penske Automotive Group had a gross margin of 16.02% for the quarter that ended in Sep. 2020 => No sustainable competitive advantage
No Headline