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Gulf General Investments Co PSC (DFM:GGICO) Gross Margin % : 27.52% (As of Mar. 2023)


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What is Gulf General Investments Co PSC Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Gulf General Investments Co PSC's Gross Profit for the three months ended in Mar. 2023 was د.إ35.3 Mil. Gulf General Investments Co PSC's Revenue for the three months ended in Mar. 2023 was د.إ128.3 Mil. Therefore, Gulf General Investments Co PSC's Gross Margin % for the quarter that ended in Mar. 2023 was 27.52%.


The historical rank and industry rank for Gulf General Investments Co PSC's Gross Margin % or its related term are showing as below:


DFM:GGICO's Gross Margin % is not ranked *
in the Conglomerates industry.
Industry Median: 25.04
* Ranked among companies with meaningful Gross Margin % only.

Gulf General Investments Co PSC had a gross margin of 27.52% for the quarter that ended in Mar. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Gulf General Investments Co PSC was 0.00% per year.


Gulf General Investments Co PSC Gross Margin % Historical Data

The historical data trend for Gulf General Investments Co PSC'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.

Gulf General Investments Co PSC Gross Margin % Chart

Gulf General Investments Co PSC Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.32 34.97 31.85 10.22 19.19

Gulf General Investments Co PSC Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 0.21 10.00 29.23 35.90 27.52

Competitive Comparison of Gulf General Investments Co PSC's Gross Margin %

For the Conglomerates subindustry, Gulf General Investments Co PSC'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.


Gulf General Investments Co PSC's Gross Margin % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Gulf General Investments Co PSC's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Gulf General Investments Co PSC's Gross Margin % falls into.



Gulf General Investments Co PSC Gross Margin % Calculation

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

Gulf General Investments Co PSC's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=80.5 / 419.33
=(Revenue - Cost of Goods Sold) / Revenue
=(419.33 - 338.85) / 419.33
=19.19 %

Gulf General Investments Co PSC's Gross Margin for the quarter that ended in Mar. 2023 is calculated as


Gross Margin % (Q: Mar. 2023 )=Gross Profit (Q: Mar. 2023 ) / Revenue (Q: Mar. 2023 )
=35.3 / 128.284
=(Revenue - Cost of Goods Sold) / Revenue
=(128.284 - 92.98) / 128.284
=27.52 %

* 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.


Gulf General Investments Co PSC  (DFM:GGICO) 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

Gulf General Investments Co PSC had a gross margin of 27.52% for the quarter that ended in Mar. 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.


Gulf General Investments Co PSC Gross Margin % Related Terms

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Gulf General Investments Co PSC (DFM:GGICO) Business Description

Traded in Other Exchanges
N/A
Address
Airport Road, Al Fattan Plaza Building, 4th Floor, P.O. Box 22588, Dubai, ARE
Gulf General Investments Co PSC is a UAE company engaged in the real estate agency, manufacturing, retail trading, real estate development, insurance writing, hospitality, and other services. Its business is functioned through Manufacturing, Investments, Insurance Services and Others segments. The manufacturing segment includes manufacture and sale of oil, grease, prefabricated houses, concrete, restaurant, ovens, kitchens, and central air conditioning systems; the investment segment focuses on real estate properties and equity securities and whereas Insurance Services and others, which is the key revenue driver, include the writing of insurance and various other services including hospitality. Geographically, the business presence of the firm is seen in the UAE and internationally.

Gulf General Investments Co PSC (DFM:GGICO) Headlines

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