Gross Margin % is calculated as gross profit divided by its revenue. Ceconomy AG's Gross Profit for the
three
months ended in Dec. 2023 was $1,302 Mil. Ceconomy AG's Revenue for the
three
months ended in Dec. 2023 was $7,616 Mil. Therefore, Ceconomy AG's Gross Margin % for the quarter that ended in Dec. 2023 was 17.10%.
Warning Sign:
Ceconomy AG 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 Ceconomy AG's Gross Margin % or its related term are showing as below:
MTAGF'
s Gross Margin % Range Over the Past 10 Years
Min: 17.12 Med: 19.48 Max: 20.69
Current: 17.76
During the past 13 years, the highestGross Margin % of Ceconomy AG was 20.69%. The lowest was 17.12%. And the median was 19.48%.
MTAGF's Gross Margin % is ranked worse than 82.18% of 1094
companies
in the Retail - Cyclical industry
Industry Median: 36.63
vs MTAGF: 17.76
Ceconomy AG had a gross margin of 17.10% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ceconomy AG was -2.80% per year.
Ceconomy AG Gross Margin % Historical Data
The historical data trend for Ceconomy AG'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.
Competitive Comparison of Ceconomy AG's Gross Margin %
For the Specialty Retail subindustry, Ceconomy AG'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.
Ceconomy AG's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ceconomy AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ceconomy AG'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.
Ceconomy AG (OTCPK:MTAGF) 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
Ceconomy AG had a gross margin of 17.10% for the quarter that ended in Dec. 2023 => No sustainable 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.
Ceconomy AG Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ceconomy AG's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ceconomy AG is engaged in the consumer electronics retail business. It operates multichannel consumer electronics stores under the MediaMarkt and Saturn brand names; redcoon.de, an online electronics store; and JUKE, a music streaming service that comprises songs, films, games, and e-books. The company also operates iBOOD, a live-shopping portal; Flip4New, a purchasing service for consumer electronics, which allows customers to sell used electronic articles; and LocaFox, a local commerce platform that connects local retailers with the multichannel world. Its operating segment includes DACH; Western/ Southern Europe; Eastern Europe and others. The company derives a majority of its revenue from the DACH segment which includes Germany, Austria, Switzerland, and Hungary.
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