The historical rank and industry rank for Essar Energy's Gross Margin % or its related term are showing as below:
LSE:ESSR'
s Gross Margin % Range Over the Past 10 Years
Min: 4.1 Med: 7.17 Max: 8.23
Current: 4.81
During the past 3 years, the highestGross Margin % of Essar Energy was 8.23%. The lowest was 4.10%. And the median was 7.17%.
LSE:ESSR's Gross Margin % is not ranked
in the Oil & Gas industry.
Industry Median: 28
vs LSE:ESSR: 4.81
Essar Energy had a gross margin of 4.10% for the quarter that ended in Mar. 2013 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Essar Energy was 0.00% per year.
Essar Energy Gross Margin % Historical Data
The historical data trend for Essar Energy'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.
Essar Energy Gross Margin % Chart
Essar Energy Annual Data
Trend
Dec09
Dec10
Mar13
Gross Margin %
8.23
7.17
4.10
Essar Energy Semi-Annual Data
Dec09
Dec10
Mar13
Gross Margin %
8.23
7.17
4.10
Competitive Comparison of Essar Energy's Gross Margin %
For the Oil & Gas Refining & Marketing subindustry, Essar Energy'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.
Essar Energy's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Essar Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Essar Energy's Gross Margin % falls into.
* 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.
Essar Energy (LSE:ESSR) 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
Essar Energy had a gross margin of 4.10% for the quarter that ended in Mar. 2013 => 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.
Essar Energy Gross Margin % Related Terms
Thank you for viewing the detailed overview of Essar Energy's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Essar Energy plc is incorporated in United Kingdom. It is a holding company. The business activities of the Group of which it is the parent are those of an India-focused energy company with assets across the power and oil and gas industries. The Group comprises four operating divisions are Refining and Marketing India, Refining and Marketing UK, Exploration and Production, Power Generation and Transmission. Refining and Marketing India owns a petroleum refinery on the west coast of India, together with a 50% interest in a petroleum refinery in Kenya, and oil retailing stations on franchise across India. Its products are high speed diesel, motor spirit, fuel oil and superior kerosene oil. The activities of Refining and Marketing include the refining of crude oil and trading, marketing and transportation of finished products and by-products. Refining and Marketing UK products include high speed diesel, motor spirit, fuel oil and superior kerosene oil. The activities of Refining and Marketing include the refining of crude oil and trading, marketing and transportation of finished products and by-products. Exploration and Production has a diverse portfolio of 15 blocks for the exploration and production of oil and gas in India, Indonesia, Madagascar, Nigeria and Vietnam. Power segment operates gas and liquid fuel-based power plants in India and Canada together with a number of mining assets. Corporate comprises Essar Energy plc and its subsidiary companies that provide services to the Group as a whole.
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