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Waste Connections (Waste Connections) Gross Margin % : 41.05% (As of Mar. 2024)


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What is Waste Connections Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Waste Connections's Gross Profit for the three months ended in Mar. 2024 was $851 Mil. Waste Connections's Revenue for the three months ended in Mar. 2024 was $2,073 Mil. Therefore, Waste Connections's Gross Margin % for the quarter that ended in Mar. 2024 was 41.05%.


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

WCN' s Gross Margin % Range Over the Past 10 Years
Min: 39.83   Med: 41.23   Max: 45.25
Current: 41.19


During the past 13 years, the highest Gross Margin % of Waste Connections was 45.25%. The lowest was 39.83%. And the median was 41.23%.

WCN's Gross Margin % is ranked better than
74.22% of 225 companies
in the Waste Management industry
Industry Median: 28.11 vs WCN: 41.19

Waste Connections had a gross margin of 41.05% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Waste Connections was -0.40% per year.


Waste Connections Gross Margin % Historical Data

The historical data trend for Waste Connections'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.

Waste Connections Gross Margin % Chart

Waste Connections 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 40.64 39.83 40.60 39.88 40.86

Waste Connections Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 39.65 40.76 41.66 41.26 41.05

Competitive Comparison of Waste Connections's Gross Margin %

For the Waste Management subindustry, Waste Connections'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.


Waste Connections's Gross Margin % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Waste Connections's Gross Margin % distribution charts can be found below:

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



Waste Connections Gross Margin % Calculation

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

Waste Connections'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 )
=3277.4 / 8021.951
=(Revenue - Cost of Goods Sold) / Revenue
=(8021.951 - 4744.513) / 8021.951
=40.86 %

Waste Connections's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=850.9 / 2072.653
=(Revenue - Cost of Goods Sold) / Revenue
=(2072.653 - 1221.783) / 2072.653
=41.05 %

* 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.


Waste Connections  (NYSE:WCN) 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

Waste Connections had a gross margin of 41.05% for the quarter that ended in Mar. 2024 => 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.


Waste Connections Gross Margin % Related Terms

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


Waste Connections (Waste Connections) Business Description

Traded in Other Exchanges
Address
6220 Highway 7, Suite 600, Woodbridge, Vaughan, ON, CAN, L4H 4G3
Waste Connections is the third-largest integrated provider of traditional solid waste and recycling services in the North America, operating 100 active landfills (9 are exploration and production waste landfills and 16 are nonmunicipal waste landfills), 157 transfer stations, and 79 recycling operations. The firm serves residential, commercial, industrial, and energy end markets. Waste Connections entered the Canadian market with its 2016 merger with Progressive Waste. In 2022, 13% of consolidated revenue was generated from the firm's Canadian segment.
Executives
Philip Rivard officer: SR VP Business Development 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Iii Robert Nielsen officer: SR VP Operations 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Robert Michael Cloninger officer: SR VP, Deputy General Counsel 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
William J Razzouk director C/O WASTE CONNECTIONS, INC, 610 APPLEWOOD CRESCENT, SUITE 200, VAUGHAN A6 L4K 0C3
James Little officer: Sr. Vice President Engineering 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Susan Netherton officer: VP People, Training & Devlpmnt 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Domenic Pio officer: SR VP Operations 1001 FANNIN ST, STE 4000, HOUSTON TX 77002
David Eddie officer: Sr. VP & Chief Accting Officer 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Andrea E. Bertone director C/O CORP. SECRETARY, PEABODY ENERGY CORP, 701 MARKET STREET, ST. LOUIS MO 63101
Eric Hansen officer: Senior Vice President and CIO 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Patrick James Shea officer: Sr. VP, General Counsel & Sec 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Jason Craft officer: Sr Vice President-Operations 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380
Darrell W Chambliss officer: EVP & COO 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
David M Hall officer: Sr. Vice President 3 WATERWAY SQUARE PLACE, SUITE 110, THE WOODLANDS TX 77380
Matthew Stephen Black officer: Sr. Vice President - Tax 3 WATERWAY SQUARE PLACE, SUITE #110, THE WOODLANDS TX 77380