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Barratt Redrow (CHIX:BTRWL) Gross Margin % : 11.69% (As of Jun. 2024)


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What is Barratt Redrow Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Barratt Redrow's Gross Profit for the six months ended in Jun. 2024 was £271 Mil. Barratt Redrow's Revenue for the six months ended in Jun. 2024 was £2,317 Mil. Therefore, Barratt Redrow's Gross Margin % for the quarter that ended in Jun. 2024 was 11.69%.

Warning Sign:

Barratt Redrow PLC gross margin has been in long-term decline. The average rate of decline per year is -8.9%.


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

CHIX:BTRWl' s Gross Margin % Range Over the Past 10 Years
Min: 12.22   Med: 18.95   Max: 22.76
Current: 12.22


During the past 13 years, the highest Gross Margin % of Barratt Redrow was 22.76%. The lowest was 12.22%. And the median was 18.95%.

CHIX:BTRWl's Gross Margin % is ranked worse than
86.96% of 92 companies
in the Homebuilding & Construction industry
Industry Median: 22.845 vs CHIX:BTRWl: 12.22

Barratt Redrow had a gross margin of 11.69% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Barratt Redrow was -8.90% per year.


Barratt Redrow Gross Margin % Historical Data

The historical data trend for Barratt Redrow'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.

Barratt Redrow Gross Margin % Chart

Barratt Redrow Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.97 20.99 17.08 18.32 12.22

Barratt Redrow Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 11.70 22.64 13.58 12.89 11.69

Competitive Comparison of Barratt Redrow's Gross Margin %

For the Residential Construction subindustry, Barratt Redrow'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.


Barratt Redrow's Gross Margin % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Barratt Redrow's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Barratt Redrow's Gross Margin % falls into.



Barratt Redrow Gross Margin % Calculation

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

Barratt Redrow's Gross Margin for the fiscal year that ended in Jun. 2024 is calculated as

Gross Margin % (A: Jun. 2024 )=Gross Profit (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=509.5 / 4168.2
=(Revenue - Cost of Goods Sold) / Revenue
=(4168.2 - 3658.7) / 4168.2
=12.22 %

Barratt Redrow's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=271 / 2317.4
=(Revenue - Cost of Goods Sold) / Revenue
=(2317.4 - 2046.4) / 2317.4
=11.69 %

* 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.


Barratt Redrow  (CHIX:BTRWl) 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

Barratt Redrow had a gross margin of 11.69% for the quarter that ended in Jun. 2024 => 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.


Barratt Redrow Gross Margin % Related Terms

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


Barratt Redrow Business Description

Traded in Other Exchanges
Address
Cartwright Way, Forest Business Park, Barratt House, Bardon Hill, Coalville, Leicestershire, GBR, LE67 1UF
Barratt Developments is the UK's largest residential property developer by revenue and dwelling completions, marketing homes under its three brands: Barratt Homes, David Wilson, and Barratt London. Aligning with the typical business model employed by UK homebuilders, Barratt is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain.

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