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Regal Entertainment Group (STU:RETA) Gross Margin % : 62.43% (As of Dec. 2017)


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What is Regal Entertainment Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Regal Entertainment Group's Gross Profit for the three months ended in Dec. 2017 was €455 Mil. Regal Entertainment Group's Revenue for the three months ended in Dec. 2017 was €728 Mil. Therefore, Regal Entertainment Group's Gross Margin % for the quarter that ended in Dec. 2017 was 62.43%.


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

STU:RETA' s Gross Margin % Range Over the Past 10 Years
Min: 59.83   Med: 60.89   Max: 62.33
Current: 62.33


During the past 13 years, the highest Gross Margin % of Regal Entertainment Group was 62.33%. The lowest was 59.83%. And the median was 60.89%.

STU:RETA's Gross Margin % is not ranked
in the Media - Diversified industry.
Industry Median: 38.51 vs STU:RETA: 62.33

Regal Entertainment Group had a gross margin of 62.43% for the quarter that ended in Dec. 2017 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Regal Entertainment Group was 0.40% per year.


Regal Entertainment Group Gross Margin % Historical Data

The historical data trend for Regal Entertainment Group'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.

Regal Entertainment Group Gross Margin % Chart

Regal Entertainment Group Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 60.84 61.27 61.39 61.63 62.33

Regal Entertainment Group Quarterly Data
Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17
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 62.50 61.78 62.17 63.00 62.43

Competitive Comparison of Regal Entertainment Group's Gross Margin %

For the Broadcasting subindustry, Regal Entertainment Group'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.


Regal Entertainment Group's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Regal Entertainment Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Regal Entertainment Group's Gross Margin % falls into.



Regal Entertainment Group Gross Margin % Calculation

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

Regal Entertainment Group's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=1665.8 / 2672.735
=(Revenue - Cost of Goods Sold) / Revenue
=(2672.735 - 1006.902) / 2672.735
=62.33 %

Regal Entertainment Group's Gross Margin for the quarter that ended in Dec. 2017 is calculated as


Gross Margin % (Q: Dec. 2017 )=Gross Profit (Q: Dec. 2017 ) / Revenue (Q: Dec. 2017 )
=454.5 / 728.052
=(Revenue - Cost of Goods Sold) / Revenue
=(728.052 - 273.527) / 728.052
=62.43 %

* 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.


Regal Entertainment Group  (STU:RETA) 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

Regal Entertainment Group had a gross margin of 62.43% for the quarter that ended in Dec. 2017 => 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.


Regal Entertainment Group Gross Margin % Related Terms

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Regal Entertainment Group Business Description

Traded in Other Exchanges
N/A
Address
Regal is the largest movie theater circuit in the United States. It operates more than 6,300 screens in 39 states, including 44 of the top 50 designated market areas. Regal generated nearly $3 billion of revenue, approximately 70% of which was from ticket sales, 25% from concessions sales, and the remaining 5% from other streams, such as on-screen advertising and in-lobby video games. Most of Regal's theaters are located in midsize cities and suburban areas of larger cities.

Regal Entertainment Group Headlines

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