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CIA de Ferro Ligas da Bahia - Ferbasa (BSP:FESA3) Gross Margin % : 22.39% (As of Sep. 2024)


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What is CIA de Ferro Ligas da Bahia - Ferbasa Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. CIA de Ferro Ligas da Bahia - Ferbasa's Gross Profit for the three months ended in Sep. 2024 was R$134 Mil. CIA de Ferro Ligas da Bahia - Ferbasa's Revenue for the three months ended in Sep. 2024 was R$598 Mil. Therefore, CIA de Ferro Ligas da Bahia - Ferbasa's Gross Margin % for the quarter that ended in Sep. 2024 was 22.39%.


The historical rank and industry rank for CIA de Ferro Ligas da Bahia - Ferbasa's Gross Margin % or its related term are showing as below:

BSP:FESA3' s Gross Margin % Range Over the Past 10 Years
Min: 15.85   Med: 31.16   Max: 46.29
Current: 21.04


During the past 13 years, the highest Gross Margin % of CIA de Ferro Ligas da Bahia - Ferbasa was 46.29%. The lowest was 15.85%. And the median was 31.16%.

BSP:FESA3's Gross Margin % is ranked better than
74.96% of 599 companies
in the Steel industry
Industry Median: 11.78 vs BSP:FESA3: 21.04

CIA de Ferro Ligas da Bahia - Ferbasa had a gross margin of 22.39% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for CIA de Ferro Ligas da Bahia - Ferbasa was 3.60% per year.


CIA de Ferro Ligas da Bahia - Ferbasa Gross Margin % Historical Data

The historical data trend for CIA de Ferro Ligas da Bahia - Ferbasa'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.

CIA de Ferro Ligas da Bahia - Ferbasa Gross Margin % Chart

CIA de Ferro Ligas da Bahia - Ferbasa 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 20.20 27.37 43.25 46.29 24.87

CIA de Ferro Ligas da Bahia - Ferbasa Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 20.40 19.61 19.12 22.85 22.39

Competitive Comparison of CIA de Ferro Ligas da Bahia - Ferbasa's Gross Margin %

For the Steel subindustry, CIA de Ferro Ligas da Bahia - Ferbasa'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.


CIA de Ferro Ligas da Bahia - Ferbasa's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, CIA de Ferro Ligas da Bahia - Ferbasa's Gross Margin % distribution charts can be found below:

* The bar in red indicates where CIA de Ferro Ligas da Bahia - Ferbasa's Gross Margin % falls into.



CIA de Ferro Ligas da Bahia - Ferbasa Gross Margin % Calculation

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

CIA de Ferro Ligas da Bahia - Ferbasa'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 )
=605.7 / 2435.135
=(Revenue - Cost of Goods Sold) / Revenue
=(2435.135 - 1829.478) / 2435.135
=24.87 %

CIA de Ferro Ligas da Bahia - Ferbasa's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=133.9 / 597.723
=(Revenue - Cost of Goods Sold) / Revenue
=(597.723 - 463.863) / 597.723
=22.39 %

* 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.


CIA de Ferro Ligas da Bahia - Ferbasa  (BSP:FESA3) 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

CIA de Ferro Ligas da Bahia - Ferbasa had a gross margin of 22.39% for the quarter that ended in Sep. 2024 => 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.


CIA de Ferro Ligas da Bahia - Ferbasa Gross Margin % Related Terms

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CIA de Ferro Ligas da Bahia - Ferbasa Business Description

Traded in Other Exchanges
Address
Estrada de Santiago s/n, Pojuca, BA, BRA, 48120000
CIA de Ferro Ligas da Bahia - Ferbasa produces ferroalloys, including chromium alloys and silicon ferroalloys. It operates in the areas of mining, reforestation, and metallurgy, offering high-carbon ferrochrome, low-carbon ferrochrome, and ferrosilicon. It also engages in the mining, forestry, metallurgy businesses.

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