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General Electric Co (NYSE:GE) Gross Margin %

: 25.88% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. General Electric Co's Gross Profit for the three months ended in Dec. 2023 was $5,027 Mil. General Electric Co's Revenue for the three months ended in Dec. 2023 was $19,423 Mil. Therefore, General Electric Co's Gross Margin % for the quarter that ended in Dec. 2023 was 25.88%.

Warning Sign:

General Electric Co gross margin has been in long-term decline. The average rate of decline per year is -2.8%.


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

GE' s Gross Margin % Range Over the Past 10 Years
Min: 23.18   Med: 26.24   Max: 28.46
Current: 25.84


During the past 13 years, the highest Gross Margin % of General Electric Co was 28.46%. The lowest was 23.18%. And the median was 26.24%.

GE's Gross Margin % is ranked worse than
51.62% of 2933 companies
in the Industrial Products industry
Industry Median: 26.37 vs GE: 25.84

General Electric Co had a gross margin of 25.88% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for General Electric Co was -2.80% per year.


General Electric Co Gross Margin % Historical Data

The historical data trend for General Electric Co'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.

General Electric Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.12 23.69 23.18 23.80 25.84

General Electric Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 Premium Member Only Premium Member Only Premium Member Only 26.07 25.93 25.97 25.61 25.88

Competitive Comparison

For the Specialty Industrial Machinery subindustry, General Electric Co'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.


General Electric Co Gross Margin % Distribution

For the Industrial Products industry and Industrials sector, General Electric Co's Gross Margin % distribution charts can be found below:

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



General Electric Co Gross Margin % Calculation

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

General Electric Co'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 )
=17562 / 67954
=(Revenue - Cost of Goods Sold) / Revenue
=(67954 - 50392) / 67954
=25.84 %

General Electric Co'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 )
=5027 / 19423
=(Revenue - Cost of Goods Sold) / Revenue
=(19423 - 14396) / 19423
=25.88 %

* 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.


General Electric Co  (NYSE:GE) 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

General Electric Co had a gross margin of 25.88% 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.


General Electric Co Gross Margin % Related Terms

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


General Electric Co (NYSE:GE) Business Description

Address
5 Necco Street, Boston, MA, USA, 02210
GE was formed through the combination of two companies in 1892, including one with historical ties to American inventor Thomas Edison. Today, GE is a global leader in air travel and in the energy transition. The company is known for its differentiated technology and its massive industrial installed base of equipment sprawled throughout the world. That installed base most notably includes aerospace engines, gas and steam turbines, and onshore and offshore wind turbines. GE earns most of its profits on the service revenue of that equipment, which is generally higher-margin. The company is led by Danaher alumnus Larry Culp, who is leading a multiyear turnaround of the conglomerate based on lean principles.
Executives
Michael J Holston officer: Senior Vice President GENERAL ELECTRIC COMPANY, ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Rahul Ghai officer: Senior Vice President GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Scott Strazik officer: Senior Vice President ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Jessica R. Uhl director 200 WEST STREET, NEW YORK NY 10282
Thomas S Timko officer: Vice President 300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
Darren W Mcdew director 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
L Kevin Cox officer: Senior Vice President THE PEPSI BOTTLING GROUP, INC., ONE PEPSI WAY, SOMERS NY 10589
Russell Stokes officer: Senior Vice President ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Happe Carolina Dybeck officer: Senior Vice President 5 NECCO STREET, BOSTON MA 02210
John S. Slattery officer: Executive Vice President 5 NECCO STREET, BOSTON MA 02210
Thomas W Horton director 4333 AMON CARTER BLVD., FORTH WORTH TX 76155
Isabella D Goren director C/O LYONDELLBASELL INDUSTRIES N V, DELFTSEPLEIN 27E, ROTTERDAM P7 3013AA
Francisco Dsouza director 500 GLENPOINTE CENTRE W, TEANECK NJ 07666
Risa J Lavizzo-mourey director GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 60661
Paula Rosput Reynolds director 605 HILLSIDE DRIVE EAST, SEATTLE WA 98112