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PanAtlantica (BSP:PATI3) Gross Margin % : 10.85% (As of Dec. 2023)


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What is PanAtlantica Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. PanAtlantica's Gross Profit for the three months ended in Dec. 2023 was R$49 Mil. PanAtlantica's Revenue for the three months ended in Dec. 2023 was R$455 Mil. Therefore, PanAtlantica's Gross Margin % for the quarter that ended in Dec. 2023 was 10.85%.

Warning Sign:

PanAtlantica SA gross margin has been in long-term decline. The average rate of decline per year is -7.2%.


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

BSP:PATI3' s Gross Margin % Range Over the Past 10 Years
Min: 8.07   Med: 12.41   Max: 17.97
Current: 9.56


During the past 13 years, the highest Gross Margin % of PanAtlantica was 17.97%. The lowest was 8.07%. And the median was 12.41%.

BSP:PATI3's Gross Margin % is ranked worse than
62.29% of 586 companies
in the Steel industry
Industry Median: 13.005 vs BSP:PATI3: 9.56

PanAtlantica had a gross margin of 10.85% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for PanAtlantica was -7.20% per year.


PanAtlantica Gross Margin % Historical Data

The historical data trend for PanAtlantica'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.

PanAtlantica Gross Margin % Chart

PanAtlantica 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 11.82 17.50 17.97 8.07 9.56

PanAtlantica Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 8.05 9.19 9.48 8.78 10.85

Competitive Comparison of PanAtlantica's Gross Margin %

For the Steel subindustry, PanAtlantica'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.


PanAtlantica's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, PanAtlantica's Gross Margin % distribution charts can be found below:

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



PanAtlantica Gross Margin % Calculation

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

PanAtlantica'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 )
=179.7 / 1879.266
=(Revenue - Cost of Goods Sold) / Revenue
=(1879.266 - 1699.553) / 1879.266
=9.56 %

PanAtlantica'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 )
=49.3 / 454.715
=(Revenue - Cost of Goods Sold) / Revenue
=(454.715 - 405.366) / 454.715
=10.85 %

* 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.


PanAtlantica  (BSP:PATI3) 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

PanAtlantica had a gross margin of 10.85% for the quarter that ended in Dec. 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.


PanAtlantica Gross Margin % Related Terms

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


PanAtlantica (BSP:PATI3) Business Description

Traded in Other Exchanges
Address
R Rudolfo Vontobel 600, P.O. Box 152 - Distrito Industrial, Gravataí, RS, BRA, 94045-405
PanAtlantica SA produces, trades, imports and exports, and processes steel and other metals. The company's products include cold-rolled strips, strapping bands, sheets and coils, blanks, slit strips and profiles. Additionally, the Company provides steel cutting services through two different processes: slitting, which cuts the steel with rotating shears to form coils, and cut-to-length, which cuts it in flat sheets.

PanAtlantica (BSP:PATI3) Headlines

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