Gross Margin % is calculated as gross profit divided by its revenue. MTN Group's Gross Profit for the
six
months ended in Dec. 2023 was $4,075 Mil. MTN Group's Revenue for the
six
months ended in Dec. 2023 was $5,788 Mil. Therefore, MTN Group's Gross Margin % for the quarter that ended in Dec. 2023 was 70.39%.
The historical rank and industry rank for MTN Group's Gross Margin % or its related term are showing as below:
MTNOY'
s Gross Margin % Range Over the Past 10 Years
Min: 64.52 Med: 71.17 Max: 73.65
Current: 71.36
During the past 13 years, the highestGross Margin % of MTN Group was 73.65%. The lowest was 64.52%. And the median was 71.17%.
MTNOY's Gross Margin % is ranked better than 82.77% of 354
companies
in the Telecommunication Services industry
Industry Median: 48.98
vs MTNOY: 71.36
MTN Group had a gross margin of 70.39% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for MTN Group was 1.70% per year.
MTN Group Gross Margin % Historical Data
The historical data trend for MTN Group'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 MTN Group's Gross Margin %
For the Telecom Services subindustry, MTN Group'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.
MTN Group's Gross Margin % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, MTN Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MTN Group'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.
MTN Group (OTCPK:MTNOY) 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
MTN Group had a gross margin of 70.39% 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.
MTN Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of MTN Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
MTN Group Ltd is a mobile telecommunications provider operating across South Africa, Nigeria, Ghana, Cameroon, Ivory Coast, Uganda, Syria, and Sudan. most of the company's revenue is earned in South Africa and Nigeria. The company also has a joint venture in Iran. From a product perspective, most of its revenue is from voice and data. Other contributors include SMS and sale of devices revenue. MTN also provides enterprise services to small/midsize enterprises and corporate clients. The company owns the mobile infrastructure and data centers. Its segments include Network services, Mobile devices, Inter- connect and roaming, Digital and fintech and others.
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