FSUMF (Fortescue) Gross Margin % : 60.44% (As of Jun. 2024)

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What is Fortescue Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fortescue's Gross Profit for the six months ended in Jun. 2024 was $5,196 Mil. Fortescue's Revenue for the six months ended in Jun. 2024 was $8,597 Mil. Therefore, Fortescue's Gross Margin % for the quarter that ended in Jun. 2024 was 60.44%.

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

FSUMF' s Gross Margin % Range Over the Past 10 Years
Min: 27.88 Med: 62.07 Max: 75.49
Current: 63.68

During the past 13 years, the highest Gross Margin % of Fortescue was 75.49%. The lowest was 27.88%. And the median was 62.07%.

FSUMF's Gross Margin % is ranked better than
90.43% of 690 companies
in the Metals & Mining industry
Industry Median: 20.41 vs FSUMF: 63.68

Fortescue had a gross margin of 60.44% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Fortescue was 0.00% per year.

Fortescue Gross Margin % Historical Data

The historical data trend for Fortescue'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.

Fortescue Gross Margin % Chart

Fortescue Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Gross Margin %

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65.88

75.49

64.33

63.59

63.69

Fortescue 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															66.01	60.31	66.47	66.63	60.44

Competitive Comparison of Fortescue's Gross Margin %

For the Other Industrial Metals & Mining subindustry, Fortescue'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.

Fortescue's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Fortescue's Gross Margin % distribution charts can be found below:

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

Fortescue Gross Margin % Calculation

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

Fortescue'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 )
	=	11534	/	18109
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(18109 - 6575)	/	18109
	=	63.69 %

Fortescue'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 )
	=	5196	/	8597
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(8597 - 3401)	/	8597
	=	60.44 %

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.

Fortescue (OTCPK:FSUMF) 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

Fortescue had a gross margin of 60.44% for the quarter that ended in Jun. 2024 => Durable 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.

Fortescue Gross Margin % Related Terms

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Fortescue Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Fortescue Ltd (OTCPK:FSUMF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

FSUGY:USA FMG:Mexico FVJ:Germany FMG:Australia

Address

87 Adelaide Terrace, Level 2, East Perth, Perth, WA, AUS, 6004

Website

https://www.fortescue.com

Fortescue is an Australia-based iron ore miner. It has grown from obscurity start of 2008 to become the world's fourth-largest producer. Growth was fueled by debt, now repaid. Expansion from 55 million metric tons in fiscal 2012 to about 190 million metric tons in 2024 means Fortescue supplies around 10% of global seaborne iron ore. Further expansion above 200 million metric tons is likely once its 22 million metric ton Iron Bridge magnetite mine ramps up, likely in 2026 or 2027. However, with longer-term demand likely to decline as China's economy matures, Fortescue's future margins are likely to be below historical averages. More recently, Fortescue diversified into green energy, with ambitions to become a major supplier of green hydrogen and green ammonia. Its efforts are early stage.