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Great Plains Energy (Great Plains Energy) Gross Margin % : 38.36% (As of Mar. 2018)


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What is Great Plains Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Great Plains Energy's Gross Profit for the three months ended in Mar. 2018 was $224.00 Mil. Great Plains Energy's Revenue for the three months ended in Mar. 2018 was $583.90 Mil. Therefore, Great Plains Energy's Gross Margin % for the quarter that ended in Mar. 2018 was 38.36%.


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

GXPPRDCL.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 40.66   Med: 43.34   Max: 68.85
Current: 45.12


During the past 13 years, the highest Gross Margin % of Great Plains Energy was 68.85%. The lowest was 40.66%. And the median was 43.34%.

GXPPRDCL.PFD's Gross Margin % is not ranked
in the Utilities - Regulated industry.
Industry Median: 28.6 vs GXPPRDCL.PFD: 45.12

Great Plains Energy had a gross margin of 38.36% for the quarter that ended in Mar. 2018 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Great Plains Energy was 1.70% per year.


Great Plains Energy Gross Margin % Historical Data

The historical data trend for Great Plains Energy'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.

Great Plains Energy Gross Margin % Chart

Great Plains Energy Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.18 40.85 43.15 46.40 45.78

Great Plains Energy Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
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 43.28 46.18 53.69 38.25 38.36

Competitive Comparison of Great Plains Energy's Gross Margin %

For the Utilities - Regulated Electric subindustry, Great Plains Energy'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.


Great Plains Energy's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Great Plains Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Great Plains Energy's Gross Margin % falls into.



Great Plains Energy Gross Margin % Calculation

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

Great Plains Energy's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=1239.7 / 2708.2
=(Revenue - Cost of Goods Sold) / Revenue
=(2708.2 - 1468.5) / 2708.2
=45.78 %

Great Plains Energy's Gross Margin for the quarter that ended in Mar. 2018 is calculated as


Gross Margin % (Q: Mar. 2018 )=Gross Profit (Q: Mar. 2018 ) / Revenue (Q: Mar. 2018 )
=224 / 583.9
=(Revenue - Cost of Goods Sold) / Revenue
=(583.9 - 359.9) / 583.9
=38.36 %

* 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.


Great Plains Energy  (NYSE:GXPPRDCL.PFD) 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

Great Plains Energy had a gross margin of 38.36% for the quarter that ended in Mar. 2018 => 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.


Great Plains Energy Gross Margin % Related Terms

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


Great Plains Energy (Great Plains Energy) Business Description

Traded in Other Exchanges
N/A
Address
Great Plains Energy is the holding company of Kansas City Power & Light and Greater Missouri Operations. The two regulated utilities provide electric service to roughly 900,000 customers in the Kansas City area and nearby western Missouri and eastern Kansas. The company has about 6.5 gigawatts of generating capacity. More than 80% of its electricity generation is from coal-fired plants, approximately 15% comes from its co-owned Wolf Creek nuclear plant, and the remainder is from gas, oil, and wind farms.

Great Plains Energy (Great Plains Energy) Headlines

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