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Companhia Brasileira de Aluminio (BSP:CBAV3) Gross Margin %

: 1.64% (As of Jun. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Companhia Brasileira de Aluminio's Gross Profit for the three months ended in Jun. 2023 was R$27 Mil. Companhia Brasileira de Aluminio's Revenue for the three months ended in Jun. 2023 was R$1,665 Mil. Therefore, Companhia Brasileira de Aluminio's Gross Margin % for the quarter that ended in Jun. 2023 was 1.64%.

Warning Sign:

Companhia Brasileira de Aluminio SA gross margin has been in long-term decline. The average rate of decline per year is -29.8%.


The historical rank and industry rank for Companhia Brasileira de Aluminio's Gross Margin % or its related term are showing as below:

BSP:CBAV3' s Gross Margin % Range Over the Past 10 Years
Min: 1.03   Med: 14.68   Max: 19.28
Current: 6.69


During the past 7 years, the highest Gross Margin % of Companhia Brasileira de Aluminio was 19.28%. The lowest was 1.03%. And the median was 14.68%.

BSP:CBAV3's Gross Margin % is ranked worse than
76.53% of 703 companies
in the Metals & Mining industry
Industry Median: 19.67 vs BSP:CBAV3: 6.69

Companhia Brasileira de Aluminio had a gross margin of 1.64% for the quarter that ended in Jun. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Companhia Brasileira de Aluminio was -29.80% per year.


Companhia Brasileira de Aluminio Gross Margin % Historical Data

The historical data trend for Companhia Brasileira de Aluminio'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.

Companhia Brasileira de Aluminio Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only 12.49 10.72 19.28 18.69 1.03

Companhia Brasileira de Aluminio Quarterly Data
Dec17 Dec18 Dec19 Mar20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Dec23
Gross Margin % 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 14.73 5.24 3.13 1.64 -

Competitive Comparison

For the Aluminum subindustry, Companhia Brasileira de Aluminio'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.


Companhia Brasileira de Aluminio Gross Margin % Distribution

For the Metals & Mining industry and Basic Materials sector, Companhia Brasileira de Aluminio's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Companhia Brasileira de Aluminio's Gross Margin % falls into.



Companhia Brasileira de Aluminio Gross Margin % Calculation

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

Companhia Brasileira de Aluminio'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 )
=75.8 / 7348.067
=(Revenue - Cost of Goods Sold) / Revenue
=(7348.067 - 7272.308) / 7348.067
=1.03 %

Companhia Brasileira de Aluminio's Gross Margin for the quarter that ended in Jun. 2023 is calculated as


Gross Margin % (Q: Jun. 2023 )=Gross Profit (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=27.3 / 1665.247
=(Revenue - Cost of Goods Sold) / Revenue
=(1665.247 - 1637.905) / 1665.247
=1.64 %

* 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.


Companhia Brasileira de Aluminio  (BSP:CBAV3) 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

Companhia Brasileira de Aluminio had a gross margin of 1.64% for the quarter that ended in Jun. 2023 => 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.


Companhia Brasileira de Aluminio Gross Margin % Related Terms

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Companhia Brasileira de Aluminio (BSP:CBAV3) Business Description

Traded in Other Exchanges
N/A
Address
Avenue Eusebio Matoso, 1375 - 12 Andar Conj 1001, Pinheiros, Sao Paulo, SP, BRA, 05423-18
Companhia Brasileira de Aluminio SA is engaged in the exploration of bauxite mining in Brazil, producing and/or trading bauxite, alumina, primary aluminum, and semi-fabricated products in Brazil and abroad. The Company has a wide product range, such as ingots, billets, plates, coils, foil, and extruded products. The company has three operating segments; the Aluminum segment comprises the operations of the aluminum production chain, from bauxite mining to the production of primary and downstream products, the Energy segment; Comprises the sale of surplus energy to the market only, and the Nickel segment; considers the operations of the Nickel and Legado Verdes do Cerrado Plants.

Companhia Brasileira de Aluminio (BSP:CBAV3) Headlines

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