Vantage Drilling InternationalVTDRF 8 Gross Margin % is -0.20% as of Dec. 2022. GuruFocus rates VTDRF with a GF Score™ of 8/100. Among 871 Oil & Gas companies, Vantage Drilling International ranks worse than 114810.45% on this metric.
Vantage Drilling International (OTCPK:VTDRF) 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
Vantage Drilling International had a gross margin of -0.20% for the quarter that ended in Dec. 2022 => 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.
Vantage Drilling International Gross Margin % Related Terms
Vantage Drilling International Gross Margin % Historical Data
* 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.
Vantage Drilling International Gross Margin % Chart
For the Oil & Gas Drilling subindustry, Vantage Drilling International'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.
Vantage Drilling International Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Vantage Drilling International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vantage Drilling International's Gross Margin % falls into.
* 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.
Vantage Drilling International (VTDRF) has a Gross Margin % of -0.20% as of Dec. 2022. Gross margin is the ratio of total gross profit to net sales. View historical data on Vantage Drilling International and its competitors. According to the industry distribution chart, Vantage Drilling International ranks #999999 out of 871 companies in the Oil & Gas industry.
Is Vantage Drilling International's Gross Margin % too high?
Vantage Drilling International's current Gross Margin % is -0.20%. Based on the distribution chart, Vantage Drilling International ranks #999999 out of 871 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Vantage Drilling International has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Vantage Drilling International's Gross Margin % compare to SOC and NBR?
According to the Oil & Gas industry distribution chart, Vantage Drilling International ranks #999999 out of 871 companies for Gross Margin %. This places Vantage Drilling International in the lower half of its industry. The industry median Gross Margin % is 25.70. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 871 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Vantage Drilling International and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vantage Drilling International's current Gross Margin % is -0.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vantage Drilling International stock overvalued right now?
Vantage Drilling International (VTDRF) has a current Gross Margin % of -0.20%. The current Gross Margin % is -0.20%. Vantage Drilling International's overall GF Score™ is 8/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Vantage Drilling International (VTDRF), the current Gross Margin % is -0.20% as of Dec. 2022. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Vantage Drilling International Business Description
Vantage Drilling International Ltd is an international offshore drilling company engaged in providing contract drilling services and related support services. The company operates through two segments: Drilling Services, which includes activities related to owned rigs, and Managed Services, which involves managing and supporting rigs owned by third parties. It mainly provides offshore drilling services to oil and gas companies in international markets.
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