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Liberty Global (Liberty Global) Gross Margin %

: 63.12% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Liberty Global's Gross Profit for the three months ended in Dec. 2023 was $1,212 Mil. Liberty Global's Revenue for the three months ended in Dec. 2023 was $1,921 Mil. Therefore, Liberty Global's Gross Margin % for the quarter that ended in Dec. 2023 was 63.12%.

Warning Sign:

Liberty Global Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


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

LBTYB' s Gross Margin % Range Over the Past 10 Years
Min: 68.17   Med: 72.34   Max: 78.18
Current: 68.17


During the past 13 years, the highest Gross Margin % of Liberty Global was 78.18%. The lowest was 68.17%. And the median was 72.34%.

LBTYB's Gross Margin % is ranked better than
79.32% of 353 companies
in the Telecommunication Services industry
Industry Median: 49.04 vs LBTYB: 68.17

Liberty Global had a gross margin of 63.12% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Liberty Global was -1.10% per year.


Liberty Global Gross Margin % Historical Data

The historical data trend for Liberty Global'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.

Liberty Global Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 71.83 71.24 70.74 71.01 68.17

Liberty Global Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 68.29 69.46 69.93 70.34 63.12

Competitive Comparison

For the Telecom Services subindustry, Liberty Global'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.


Liberty Global Gross Margin % Distribution

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

* The bar in red indicates where Liberty Global's Gross Margin % falls into.



Liberty Global Gross Margin % Calculation

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

Liberty Global's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=5106.7 / 7491.4
=(Revenue - Cost of Goods Sold) / Revenue
=(7491.4 - 2384.7) / 7491.4
=68.17 %

Liberty Global's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1212.2 / 1920.5
=(Revenue - Cost of Goods Sold) / Revenue
=(1920.5 - 708.3) / 1920.5
=63.12 %

* 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.


Liberty Global  (NAS:LBTYB) 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

Liberty Global had a gross margin of 63.12% 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.


Liberty Global Gross Margin % Related Terms

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


Liberty Global (Liberty Global) Business Description

Traded in Other Exchanges
Address
161 Hammersmith Road, Griffin House, London, GBR, W6 8BS
Liberty Global is a holding company with interests in several telecom companies in the U.K., Netherlands, Belgium, Switzerland, Ireland, and Slovakia. Liberty is the owner of the main cable network in each of these geographies and has pursued a strategy since 2016 to merge or partner with mobile-network-operators to be able to offer converged services. Liberty also owns minority stakes in other media, entertainment, and cloud companies.