Babylon Pump & Power (ASX:BPP) Gross Margin %

: 28.91% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Babylon Pump & Power's Gross Profit for the six months ended in Dec. 2023 was A$6.47 Mil. Babylon Pump & Power's Revenue for the six months ended in Dec. 2023 was A$22.38 Mil. Therefore, Babylon Pump & Power's Gross Margin % for the quarter that ended in Dec. 2023 was 28.91%.

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

ASX:BPP' s Gross Margin % Range Over the Past 10 Years
Min: 18.61 Med: 25.71 Max: 40.25
Current: 39.27

During the past 13 years, the highest Gross Margin % of Babylon Pump & Power was 40.25%. The lowest was 18.61%. And the median was 25.71%.

ASX:BPP's Gross Margin % is ranked better than
56.54% of 994 companies
in the Business Services industry
Industry Median: 34.85 vs ASX:BPP: 39.27

Babylon Pump & Power had a gross margin of 28.91% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Babylon Pump & Power was 7.00% per year.

Babylon Pump & Power Gross Margin % Historical Data

The historical data trend for Babylon Pump & Power'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.

Babylon Pump & Power Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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24.88

19.56

18.61

27.66

40.25

Babylon Pump & Power Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															15.64	39.58	24.63	51.59	28.91

Competitive Comparison

For the Rental & Leasing Services subindustry, Babylon Pump & Power'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.

Babylon Pump & Power Gross Margin % Distribution

For the Business Services industry and Industrials sector, Babylon Pump & Power's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Babylon Pump & Power's Gross Margin % falls into.

Babylon Pump & Power Gross Margin % Calculation

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

Babylon Pump & Power's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	13.1	/	32.501
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(32.501 - 19.42)	/	32.501
	=	40.25 %

Babylon Pump & Power's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	6.5	/	22.38
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(22.38 - 15.91)	/	22.38
	=	28.91 %

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.

Babylon Pump & Power (ASX:BPP) 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

Babylon Pump & Power had a gross margin of 28.91% for the quarter that ended in Dec. 2023 => 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.

Babylon Pump & Power Gross Margin % Related Terms

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Babylon Pump & Power (ASX:BPP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Babylon Pump & Power Ltd (ASX:BPP) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Port Place, High Wycombe, Perth, WA, AUS, 6057

Website

https://www.babylonpumpandpower.com

Babylon Pump & Power Ltd is an Australia-based provider of rental equipment. Babylon considers its two business units as its reporting segments. The Maintenance segment focuses on rebuild and maintenance services for large diesel driven equipment including field service work and high-pressure water blasting and ancillary services to the resources sector. The Rental segment provides rental services of specialty diesel driven pumping and power generation equipment. Geographically, it operates only in Australia.

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