Seven Generations Energy (TSX:VII) Gross Margin % : 46.53% (As of Dec. 2020)

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What is Seven Generations Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Seven Generations Energy's Gross Profit for the three months ended in Dec. 2020 was C$352 Mil. Seven Generations Energy's Revenue for the three months ended in Dec. 2020 was C$757 Mil. Therefore, Seven Generations Energy's Gross Margin % for the quarter that ended in Dec. 2020 was 46.53%.

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

TSX:VII's Gross Margin % is not ranked ^*
in the Oil & Gas industry.
Industry Median: 27.83
* Ranked among companies with meaningful Gross Margin % only.

Seven Generations Energy had a gross margin of 46.53% for the quarter that ended in Dec. 2020 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Seven Generations Energy was 0.00% per year.

Seven Generations Energy Gross Margin % Historical Data

The historical data trend for Seven Generations 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.

Seven Generations Energy Gross Margin % Chart

Seven Generations Energy Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Gross Margin %

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58.64

59.62

61.42

53.05

36.57

Seven Generations Energy Quarterly Data
	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20
Gross Margin %	Get a 7-Day Free Trial															54.73	39.15	20.80	32.26	46.53

Competitive Comparison of Seven Generations Energy's Gross Margin %

For the Oil & Gas E&P subindustry, Seven Generations 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.

Seven Generations Energy's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Seven Generations Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Seven Generations Energy's Gross Margin % falls into.

Seven Generations Energy Gross Margin % Calculation

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

Seven Generations Energy's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )	=	Gross Profit (A: Dec. 2020 )	/	Revenue (A: Dec. 2020 )
	=	870.4	/	2380.2
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2380.2 - 1509.8)	/	2380.2
	=	36.57 %

Seven Generations Energy's Gross Margin for the quarter that ended in Dec. 2020 is calculated as

Gross Margin % (Q: Dec. 2020 )	=	Gross Profit (Q: Dec. 2020 )	/	Revenue (Q: Dec. 2020 )
	=	352.3	/	757.1
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(757.1 - 404.8)	/	757.1
	=	46.53 %

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.

Seven Generations Energy (TSX:VII) 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

Seven Generations Energy had a gross margin of 46.53% for the quarter that ended in Dec. 2020 => 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.

Seven Generations Energy Gross Margin % Related Terms

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Seven Generations Energy (TSX:VII) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Seven Generations Energy Ltd (TSX:VII) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

525 - 8 Avenue SW, Suite 4400, Eighth Avenue Place East, Calgary, AB, CAN, T2P 1G1

Website

http://www.7genergy.com

Seven Generations Energy Ltd is an independent energy company focused on the acquisition, development, and optimization of high-quality, tight rock, natural gas resource plays. The company employs long-reach and horizontal drilling to produce resources of natural gas, condensate, and natural gas liquids. In addition to drilling operations, Seven Generations owns several gathering lines and processing facilities. The company depends on a skilled technical and business team to identify, capture, develop, and catalyze production from resource plays.