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Telesat Gross Margin %

: 96.01% (As of Dec. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Telesat's Gross Profit for the six months ended in Dec. 2021 was $568.7 Mil. Telesat's Revenue for the six months ended in Dec. 2021 was $592.4 Mil. Therefore, Telesat's Gross Margin % for the quarter that ended in Dec. 2021 was 96.01%.


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

TSAT' s Gross Margin % Range Over the Past 10 Years
Min: 95.91   Med: 95.93   Max: 96.01
Current: 96.01


During the past 3 years, the highest Gross Margin % of Telesat was 96.01%. The lowest was 95.91%. And the median was 95.93%.

TSAT's Gross Margin % is ranked better than
99.4% of 2349 companies
in the Hardware industry
Industry Median: 24.24 vs TSAT: 96.01

Telesat had a gross margin of 96.01% for the quarter that ended in Dec. 2021 => Durable competitive advantage

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


Telesat Gross Margin % Historical Data

The historical data trend for Telesat'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.

Telesat Annual Data
Trend Dec19 Dec20 Dec21
Gross Margin %
95.91 95.93 96.01

Telesat Semi-Annual Data
Dec19 Dec20 Dec21
Gross Margin % 95.91 95.93 96.01

Competitive Comparison

For the Communication Equipment subindustry, Telesat'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.

   

Telesat Gross Margin % Distribution

For the Hardware industry and Technology sector, Telesat's Gross Margin % distribution charts can be found below:

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



Telesat Gross Margin % Calculation

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

Telesat'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 )
=568.7 / 592.353125
=(Revenue - Cost of Goods Sold) / Revenue
=(592.353125 - 23.60546875) / 592.353125
=96.01 %

Telesat'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 )
=568.7 / 592.353125
=(Revenue - Cost of Goods Sold) / Revenue
=(592.353125 - 23.60546875) / 592.353125
=96.01 %

* 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.


Telesat  (NAS:TSAT) 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

Telesat had a gross margin of 96.01% 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.


Telesat Gross Margin % Related Terms

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


Telesat Business Description

Telesat logo
Traded in Other Exchanges
Address
160 Elgin Street, Ottawa, ON, CAN, K2P 2P7
Telesat Corp is a global satellite operator, providing its customers with mission-critical communications services. The company's segment includes Broadcast; Enterprise and Consulting and other. It generates maximum revenue from the Broadcast segment. The Broadcast segment includes Direct-to-home television, video distribution and contribution, and occasional use services. Geographically, it derives a majority of revenue from Canada.
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