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Ayala (PHS:AC) Gross Margin % : 28.61% (As of Sep. 2024)


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What is Ayala Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ayala's Gross Profit for the three months ended in Sep. 2024 was ₱21,813 Mil. Ayala's Revenue for the three months ended in Sep. 2024 was ₱76,238 Mil. Therefore, Ayala's Gross Margin % for the quarter that ended in Sep. 2024 was 28.61%.

Warning Sign:

Ayala Corp gross margin has been in long-term decline. The average rate of decline per year is -4.5%.


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

PHS:AC' s Gross Margin % Range Over the Past 10 Years
Min: 22.16   Med: 28.04   Max: 30.55
Current: 27.14


During the past 13 years, the highest Gross Margin % of Ayala was 30.55%. The lowest was 22.16%. And the median was 28.04%.

PHS:AC's Gross Margin % is ranked better than
54.09% of 501 companies
in the Conglomerates industry
Industry Median: 24.57 vs PHS:AC: 27.14

Ayala had a gross margin of 28.61% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Ayala was -4.50% per year.


Ayala Gross Margin % Historical Data

The historical data trend for Ayala'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.

Ayala Gross Margin % Chart

Ayala Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.39 28.70 24.31 22.16 25.55

Ayala Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 25.87 25.96 25.76 28.27 28.61

Competitive Comparison of Ayala's Gross Margin %

For the Conglomerates subindustry, Ayala'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.


Ayala's Gross Margin % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Ayala's Gross Margin % distribution charts can be found below:

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



Ayala Gross Margin % Calculation

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

Ayala'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 )
=75432.2 / 295264.273
=(Revenue - Cost of Goods Sold) / Revenue
=(295264.273 - 219832.04) / 295264.273
=25.55 %

Ayala's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=21813.2 / 76237.519
=(Revenue - Cost of Goods Sold) / Revenue
=(76237.519 - 54424.359) / 76237.519
=28.61 %

* 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.


Ayala  (PHS:AC) 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

Ayala had a gross margin of 28.61% for the quarter that ended in Sep. 2024 => Competition eroding margins


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.


Ayala Gross Margin % Related Terms

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


Ayala Business Description

Traded in Other Exchanges
Address
Paseo de Roxas corner, Makati Avenue, 37th Floor to 39th Floor, Ayala Triangle Gardens Tower 2, Makati, PHL, 1226
Ayala Corporation is a general real estate company. The group is organized into a variety of business units. Ayala's real estate business is predominantly conducted through its subsidiary, Ayala Land, Inc. Its involvement in financial services is through an affiliate, the Bank of the Philippine Islands. The group's business has the following main segments: Parent Company; Real estate and hotels; Financial services and insurance; Telecommunications; Industrial Technologies; Power Generation; and Automotive and Others.