Ooredoo (MUS:ORDS) Gross Margin % : 48.40% (As of Dec. 2023)

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What is Ooredoo Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ooredoo's Gross Profit for the six months ended in Dec. 2023 was ر.ع125.4 Mil. Ooredoo's Revenue for the six months ended in Dec. 2023 was ر.ع259.1 Mil. Therefore, Ooredoo's Gross Margin % for the quarter that ended in Dec. 2023 was 48.40%.

Warning Sign:

Ooredoo gross margin has been in long-term decline. The average rate of decline per year is -11.1%.

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

MUS:ORDS' s Gross Margin % Range Over the Past 10 Years
Min: 48.4 Med: 76.25 Max: 84.1
Current: 48.4

During the past 13 years, the highest Gross Margin % of Ooredoo was 84.10%. The lowest was 48.40%. And the median was 76.25%.

MUS:ORDS's Gross Margin % is ranked worse than
51.57% of 351 companies
in the Telecommunication Services industry
Industry Median: 49.84 vs MUS:ORDS: 48.40

Ooredoo had a gross margin of 48.40% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ooredoo was -11.10% per year.

Ooredoo Gross Margin % Historical Data

The historical data trend for Ooredoo'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.

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Ooredoo Gross Margin % Chart

Ooredoo Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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84.10

53.40

52.45

52.50

48.40

Ooredoo Semi-Annual Data
	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22	Dec23
Gross Margin %	Get a 7-Day Free Trial										84.10	53.40	52.45	52.50	48.40

Competitive Comparison of Ooredoo's Gross Margin %

For the Telecom Services subindustry, Ooredoo'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.

Ooredoo's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Ooredoo's Gross Margin % distribution charts can be found below:

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

Ooredoo Gross Margin % Calculation

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

Ooredoo'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 )
	=	125.4	/	259.115
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(259.115 - 133.708)	/	259.115
	=	48.40 %

Ooredoo'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 )
	=	125.4	/	259.115
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(259.115 - 133.708)	/	259.115
	=	48.40 %

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.

Ooredoo (MUS:ORDS) 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

Ooredoo had a gross margin of 48.40% for the quarter that ended in Dec. 2023 => 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.

Ooredoo Gross Margin % Related Terms

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

Ooredoo (MUS:ORDS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Ooredoo (MUS:ORDS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Central Post Office, P.O. Box 874, Tilal Building, Muscat, OMN, 111

Website

https://www.ooredoo.om

Ooredoo is an Oman-based company operating in the telecom industry. Its principal activities are the operation, maintenance, and development of mobile and fixed telecommunications services in the Sultanate of Oman. The company operates through two business segments, namely Mobile and Fixed-line. The Mobile segment is engaged in the operation of a global system for mobile communication for pre-paid and post-paid services, the sale of telecommunication equipment, and other associated services. The Fixed-line segment is involved in the provision of international and national voice and data services from fixed lines, the sale of telecommunication equipment, and other associated services. It derives a majority of the revenue from the Mobile segment.

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