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Plains GP Holdings LP Gross Margin %

: 6.22% (As of Dec. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Plains GP Holdings LP's Gross Profit for the three months ended in Dec. 2020 was $371 Mil. Plains GP Holdings LP's Revenue for the three months ended in Dec. 2020 was $5,963 Mil. Therefore, Plains GP Holdings LP's Gross Margin % for the quarter that ended in Dec. 2020 was 6.22%.

Warning Sign:

Plains GP Holdings LP gross margin has been in long term decline. The average rate of decline per year is -5.2%.


NAS:PAGP' s Gross Margin % Range Over the Past 10 Years
Min: 7.18   Med: 9.92   Max: 12.93
Current: 9.46
7.18
12.93

During the past 11 years, the highest Gross Margin % of Plains GP Holdings LP was 12.93%. The lowest was 7.18%. And the median was 9.92%.

NAS:PAGP's Gross Margin % is ranked lower than
64% of the 1008 Companies
in the Oil & Gas industry.

( Industry Median: 17.99 vs. NAS:PAGP: 9.46 )

Plains GP Holdings LP had a gross margin of 6.22% for the quarter that ended in Dec. 2020 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Plains GP Holdings LP was -5.20% per year.

Plains GP Holdings LP Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

* Premium members only.

Plains GP Holdings LP Annual Data
Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.06 10.37 10.99 10.73 9.46

Plains GP Holdings LP Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
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 8.27 8.86 16.56 9.69 6.22
Competitive Comparison
* 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.

Plains GP Holdings LP Gross Margin % Distribution

* The bar in red indicates where Plains GP Holdings LP's Gross Margin % falls into.


Plains GP Holdings LP Gross Margin % Calculation

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

Plains GP Holdings LP's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=2203 / 23290
=(Revenue - Cost of Goods Sold) / Revenue
=(23290 - 21087) / 23290
=9.46 %

Plains GP Holdings LP's Gross Margin for the quarter that ended in Dec. 2020 is calculated as


Gross Margin % (Q: Dec. 2020 )=Gross Profit (Q: Dec. 2020 ) / Revenue (Q: Dec. 2020 )
=371 / 5963
=(Revenue - Cost of Goods Sold) / Revenue
=(5963 - 5592) / 5963
=6.22 %

* All numbers are in millions except for per share data and ratio. All numbers 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.

Plains GP Holdings LP  (NAS:PAGP) 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

Plains GP Holdings LP had a gross margin of 6.22% for the quarter that ended in Dec. 2020 => 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.

Plains GP Holdings LP Gross Margin % Related Terms

Plains GP Holdings LP Gross Margin % Headlines

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