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Vodafone Group Gross Margin %

: 31.60% (As of Sep. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Vodafone Group's Gross Profit for the six months ended in Sep. 2020 was $7,974 Mil. Vodafone Group's Revenue for the six months ended in Sep. 2020 was $25,238 Mil. Therefore, Vodafone Group's Gross Margin % for the quarter that ended in Sep. 2020 was 31.60%.


NAS:VOD' s Gross Margin % Range Over the Past 10 Years
Min: 26.29   Med: 29.78   Max: 32.84
Current: 31.79

26.29
32.84

During the past 13 years, the highest Gross Margin % of Vodafone Group was 32.84%. The lowest was 26.29%. And the median was 29.78%.

NAS:VOD's Gross Margin % is ranked lower than
75% of the 373 Companies
in the Telecommunication Services industry.

( Industry Median: 49.51 vs. NAS:VOD: 31.79 )

Vodafone Group had a gross margin of 31.60% for the quarter that ended in Sep. 2020 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Vodafone Group was 3.80% per year.


Vodafone Group Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Vodafone Group Annual Data
Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.29 27.41 29.63 30.93 31.78

Vodafone Group Semi-Annual Data
Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20
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 30.55 31.31 31.58 31.96 31.60

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.


Vodafone Group Gross Margin % Distribution

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



Vodafone Group Gross Margin % Calculation

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

Vodafone Group's Gross Margin for the fiscal year that ended in Mar. 2020 is calculated as

Gross Margin % (A: Mar. 2020 )=Gross Profit (A: Mar. 2020 ) / Revenue (A: Mar. 2020 )
=15792.3 / 49695.027624309
=(Revenue - Cost of Goods Sold) / Revenue
=(49695.027624309 - 33902.762430939) / 49695.027624309
=31.78 %

Vodafone Group's Gross Margin for the quarter that ended in Sep. 2020 is calculated as


Gross Margin % (Q: Sep. 2020 )=Gross Profit (Q: Sep. 2020 ) / Revenue (Q: Sep. 2020 )
=7974.1 / 25237.926972909
=(Revenue - Cost of Goods Sold) / Revenue
=(25237.926972909 - 17263.839811543) / 25237.926972909
=31.60 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Vodafone Group  (NAS:VOD) 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

Vodafone Group had a gross margin of 31.60% for the quarter that ended in Sep. 2020 => Competition eroding margins


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.


Vodafone Group Gross Margin % Related Terms


Vodafone Group Gross Margin % Headlines

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