Gross Margin % is calculated as gross profit divided by its revenue. Alphabet(Google)'s Gross Profit for the
three
months ended in Dec. 2023 was $48,735 Mil. Alphabet(Google)'s Revenue for the
three
months ended in Dec. 2023 was $86,310 Mil. Therefore, Alphabet(Google)'s Gross Margin % for the quarter that ended in Dec. 2023 was 56.47%.
The historical rank and industry rank for Alphabet(Google)'s Gross Margin % or its related term are showing as below:
GOOG'
s Gross Margin % Range Over the Past 10 Years
Min: 53.58 Med: 56.79 Max: 62.44
Current: 56.63
During the past 13 years, the highestGross Margin % of Alphabet(Google) was 62.44%. The lowest was 53.58%. And the median was 56.79%.
GOOG's Gross Margin % is ranked worse than 54.72% of 519
companies
in the Interactive Media industry
Industry Median: 60.86
vs GOOG: 56.63
Alphabet(Google) had a gross margin of 56.47% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Alphabet(Google) was 0.20% per year.
Alphabet(Google) Gross Margin % Historical Data
The historical data trend for Alphabet(Google)'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.
Alphabet(Google) Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
55.58
53.58
56.94
55.38
56.63
Alphabet(Google) Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
53.53
56.14
57.22
56.67
56.47
Competitive Comparison
For the Internet Content & Information subindustry, Alphabet(Google)'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.
Alphabet(Google) Gross Margin % Distribution
For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alphabet(Google)'s Gross Margin % falls into.
* 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.
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
Alphabet(Google) had a gross margin of 56.47% for the quarter that ended in Dec. 2023 => Durable 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.
Alphabet(Google) Gross Margin % Related Terms
Thank you for viewing the detailed overview of Alphabet(Google)'s Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Alphabet is a holding company. Internet media giant Google is a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart home products, which include Nest and Google Home, also contribute to other revenue. Alphabet's moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), provide faster internet access (Google Fiber), enable self-driving cars (Waymo), and more.
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