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Balfour Beatty (Balfour Beatty) Gross Margin % : 5.26% (As of Dec. 2023)


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What is Balfour Beatty Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Balfour Beatty's Gross Profit for the six months ended in Dec. 2023 was $278 Mil. Balfour Beatty's Revenue for the six months ended in Dec. 2023 was $5,294 Mil. Therefore, Balfour Beatty's Gross Margin % for the quarter that ended in Dec. 2023 was 5.26%.


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

BAFBF' s Gross Margin % Range Over the Past 10 Years
Min: 1.8   Med: 4.3   Max: 5.6
Current: 5


During the past 13 years, the highest Gross Margin % of Balfour Beatty was 5.60%. The lowest was 1.80%. And the median was 4.30%.

BAFBF's Gross Margin % is ranked worse than
88.93% of 1608 companies
in the Construction industry
Industry Median: 19.23 vs BAFBF: 5.00

Balfour Beatty had a gross margin of 5.26% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Balfour Beatty was -0.50% per year.


Balfour Beatty Gross Margin % Historical Data

The historical data trend for Balfour Beatty'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.

Balfour Beatty Gross Margin % Chart

Balfour Beatty Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.22 3.27 3.91 5.60 5.00

Balfour Beatty 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 3.95 4.80 6.31 4.72 5.26

Competitive Comparison of Balfour Beatty's Gross Margin %

For the Engineering & Construction subindustry, Balfour Beatty'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.


Balfour Beatty's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Balfour Beatty's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Balfour Beatty's Gross Margin % falls into.



Balfour Beatty Gross Margin % Calculation

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

Balfour Beatty'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 )
=506.3 / 10117.722
=(Revenue - Cost of Goods Sold) / Revenue
=(10117.722 - 9611.393) / 10117.722
=5.00 %

Balfour Beatty'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 )
=278.5 / 5293.671
=(Revenue - Cost of Goods Sold) / Revenue
=(5293.671 - 5015.19) / 5293.671
=5.26 %

* 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.


Balfour Beatty  (OTCPK:BAFBF) 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

Balfour Beatty had a gross margin of 5.26% for the quarter that ended in Dec. 2023 => No sustainable 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.


Balfour Beatty Gross Margin % Related Terms

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


Balfour Beatty (Balfour Beatty) Business Description

Traded in Other Exchanges
Address
5 Churchill Place, Canary Wharf, London, GBR, E14 5HU
Balfour Beatty PLC finances, builds, and maintains infrastructure projects. It develops projects in energy, water, communications, transportation, and other industrial markets. In addition, the company manages construction businesses and provides maintenance and management services in power transmission, utilities infrastructure, road, and rail. Some projects are granted through concessions by government authorities. Balfour Beatty operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets when there are opportunities to manage the projects upon completion and create recurring revenue. The majority of sales are derived from the United Kingdom and the United States.