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Rostelecom PJSC (LSE:RKMD) Gross Margin %

: 77.36% (As of Dec. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Rostelecom PJSC's Gross Profit for the three months ended in Dec. 2021 was $1,761 Mil. Rostelecom PJSC's Revenue for the three months ended in Dec. 2021 was $2,277 Mil. Therefore, Rostelecom PJSC's Gross Margin % for the quarter that ended in Dec. 2021 was 77.36%.


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


LSE:RKMD's Gross Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 49.04
* Ranked among companies with meaningful Gross Margin % only.

Rostelecom PJSC had a gross margin of 77.36% for the quarter that ended in Dec. 2021 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Rostelecom PJSC was 0.00% per year.


Rostelecom PJSC Gross Margin % Historical Data

The historical data trend for Rostelecom PJSC'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.

Rostelecom PJSC Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 74.23 73.62 74.77 75.14 75.82

Rostelecom PJSC Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
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 76.16 74.83 75.88 74.88 77.36

Competitive Comparison

For the Telecom Services subindustry, Rostelecom PJSC'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.


Rostelecom PJSC Gross Margin % Distribution

For the Telecommunication Services industry and Communication Services sector, Rostelecom PJSC's Gross Margin % distribution charts can be found below:

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



Rostelecom PJSC Gross Margin % Calculation

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

Rostelecom PJSC's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=5949.1 / 7845.973
=(Revenue - Cost of Goods Sold) / Revenue
=(7845.973 - 1896.828) / 7845.973
=75.82 %

Rostelecom PJSC's Gross Margin for the quarter that ended in Dec. 2021 is calculated as


Gross Margin % (Q: Dec. 2021 )=Gross Profit (Q: Dec. 2021 ) / Revenue (Q: Dec. 2021 )
=1761.2 / 2276.757
=(Revenue - Cost of Goods Sold) / Revenue
=(2276.757 - 515.521) / 2276.757
=77.36 %

* 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.


Rostelecom PJSC  (LSE:RKMD) 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

Rostelecom PJSC had a gross margin of 77.36% for the quarter that ended in Dec. 2021 => 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.


Rostelecom PJSC Gross Margin % Related Terms

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Rostelecom PJSC (LSE:RKMD) Business Description

Traded in Other Exchanges
N/A
Address
Goncharnaya Street, 30 (Building 1), Moscow, RUS, 115172
Rostelecom PJSC had a monopoly on domestic and international long-distance telephone services in Russia until the market was deregulated on Jan. 1, 2006, allowing competition. The firm still has over 50% market share in the sector. It carries over 10 billion domestic and over 4.8 billion international long-distance minutes of traffic. Rostelecom also runs other businesses, including leased line services, intelligent network services, and customer equipment servicing.

Rostelecom PJSC (LSE:RKMD) Headlines

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