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Rautaruukki Oyj (OHEL:RTRKS) Gross Margin % : 8.78% (As of Sep. 2014)


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What is Rautaruukki Oyj Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Rautaruukki Oyj's Gross Profit for the three months ended in Sep. 2014 was €51 Mil. Rautaruukki Oyj's Revenue for the three months ended in Sep. 2014 was €581 Mil. Therefore, Rautaruukki Oyj's Gross Margin % for the quarter that ended in Sep. 2014 was 8.78%.


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

OHEL:RTRKS' s Gross Margin % Range Over the Past 10 Years
Min: -3.95   Med: 31.3   Max: 45.27
Current: 9.12


During the past 13 years, the highest Gross Margin % of Rautaruukki Oyj was 45.27%. The lowest was -3.95%. And the median was 31.30%.

OHEL:RTRKS's Gross Margin % is not ranked
in the Steel industry.
Industry Median: 12.95 vs OHEL:RTRKS: 9.12

Rautaruukki Oyj had a gross margin of 8.78% for the quarter that ended in Sep. 2014 => No sustainable competitive advantage

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


Rautaruukki Oyj Gross Margin % Historical Data

The historical data trend for Rautaruukki Oyj'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.

Rautaruukki Oyj Gross Margin % Chart

Rautaruukki Oyj Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.95 9.48 9.47 5.01 9.60

Rautaruukki Oyj Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 9.12 8.47 9.12 10.05 8.78

Competitive Comparison of Rautaruukki Oyj's Gross Margin %

For the Steel subindustry, Rautaruukki Oyj'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.


Rautaruukki Oyj's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Rautaruukki Oyj's Gross Margin % distribution charts can be found below:

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



Rautaruukki Oyj Gross Margin % Calculation

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

Rautaruukki Oyj's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin % (A: Dec. 2013 )=Gross Profit (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=231 / 2405
=(Revenue - Cost of Goods Sold) / Revenue
=(2405 - 2174) / 2405
=9.60 %

Rautaruukki Oyj's Gross Margin for the quarter that ended in Sep. 2014 is calculated as


Gross Margin % (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=51 / 581
=(Revenue - Cost of Goods Sold) / Revenue
=(581 - 530) / 581
=8.78 %

* 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.


Rautaruukki Oyj  (OHEL:RTRKS) 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

Rautaruukki Oyj had a gross margin of 8.78% for the quarter that ended in Sep. 2014 => 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.


Rautaruukki Oyj Gross Margin % Related Terms

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


Rautaruukki Oyj (OHEL:RTRKS) Business Description

Traded in Other Exchanges
N/A
Address
Rautaruukki Oyj supplies metal-based components, systems and integrated systems to construction and the engineering industry. The company's operations are structured into three divisions: construction, engineering, and steel business. Its construction division supplies steel construction solutions for commercial and industrial construction, as well as for infrastructure foundation and transport infrastructure projects. The divisions' product portfolio includes building frames, wall and roofing products, integrated systems for single and multi-story construction, bridges, traffic noise barriers and highway guard rails, piles, retaining wall structures and foundations for harbor construction. Its customers include developers, designs and builders of commercial, industrial and office premises, logistics and sports complexes and infrastructure services as well as roofing suppliers. Its engineering division supplies systems and components to the engineering industry, such as cabins, booms, masts and frames for goods and container handling, the construction industry and mining and forestry, telescopic booms, frames and parts; windmill components and oil sumps. Main markets serve international European companies, specifically the lifting, handling, and transportation equipment industry, the energy industry, the marine and offshore industry and the paper and wood industry. The Metals division supplies steel products associated with prefabrication, logistics and storage services. The division's product portfolio consists of hot and cold-rolled steels, metal and color-coated steels, tubes and profiles and stainless steel and aluminum sold as trading products. Its customers include the transportation equipment, construction, engineering and electronics industries in Europe and Russia.

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