Asbury Automotive Group (Asbury Automotive Group) Gross Margin %

: 17.66% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Asbury Automotive Group's Gross Profit for the three months ended in Dec. 2023 was $673 Mil. Asbury Automotive Group's Revenue for the three months ended in Dec. 2023 was $3,812 Mil. Therefore, Asbury Automotive Group's Gross Margin % for the quarter that ended in Dec. 2023 was 17.66%.

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

ABG' s Gross Margin % Range Over the Past 10 Years
Min: 16.05 Med: 16.42 Max: 20.09
Current: 18.62

During the past 13 years, the highest Gross Margin % of Asbury Automotive Group was 20.09%. The lowest was 16.05%. And the median was 16.42%.

ABG's Gross Margin % is ranked worse than
52.28% of 1270 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs ABG: 18.62

Asbury Automotive Group had a gross margin of 17.66% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Asbury Automotive Group was 4.40% per year.

Asbury Automotive Group Gross Margin % Historical Data

The historical data trend for Asbury Automotive 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.

* Premium members only.

Asbury Automotive Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

16.21

17.15

19.34

20.09

18.62

Asbury Automotive Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																19.92	19.43	19.05	18.37	17.66

Competitive Comparison

For the Auto & Truck Dealerships subindustry, Asbury Automotive 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.

Asbury Automotive Group Gross Margin % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Asbury Automotive Group's Gross Margin % distribution charts can be found below:

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

Asbury Automotive Group Gross Margin % Calculation

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

Asbury Automotive Group'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 )
	=	2755.8	/	14802.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(14802.7 - 12046.9)	/	14802.7
	=	18.62 %

Asbury Automotive Group'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 )
	=	673	/	3811.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3811.7 - 3138.7)	/	3811.7
	=	17.66 %

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.

Asbury Automotive Group (NYSE:ABG) 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

Asbury Automotive Group had a gross margin of 17.66% for the quarter that ended in Dec. 2023 => 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.

Asbury Automotive Group Gross Margin % Related Terms

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Asbury Automotive Group (Asbury Automotive Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Asbury Automotive Group Inc (NYSE:ABG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

AWG:Germany

Address

2905 Premiere Parkway North West, Suite 300, Duluth, GA, USA, 30097

Website

https://www.asburyauto.com

Asbury Automotive Group is a regional collection of automobile dealerships that went public in March 2002. The company operates 138 new-vehicle stores, seven used-vehicle stores, and 32 collision centers. Over 70% of new-vehicle revenue is from luxury and import brands. Asbury also offers third-party financing and insurance products and its own F&I products via Total Care Auto. Asbury operates in 14 states (mostly Texas, the West, and the Southeast). Asbury store brands include David McDavid and Park Place in Texas, and the Larry H. Miller brand in the Western U.S. It plans to acquire Koons in the Washington, D.C. area in late 2023 or early 2024. Asbury generated $15.4 billion of revenue in 2022 and is based in the Atlanta area. The firm targets about $32 billion in 2025.

Executives

Daniel Clara	officer: SVP, Operations	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, STE 300, DULUTH GA 30097
Philip F Maritz	director	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, STE 300, DULUTH GA 30097
George A Villasana	officer: VP & General Counsel	2905 PREMIERE PARKWAY, SUITE 300, DULUTH GA 30097
Miran Maric	officer: SVP, Strategy & Innovation	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, SUITE 300, DULUTH GA 30097
Bridget Ryan Berman	director	161 FALCON ROAD, GUILFORD CT 06437
David W Hult	officer: EVP & COO	800 GESSNER, SUITE 500, HOUSTON TX 77024
Jed Milstein	officer: VP & CHRO	2905 PREMIERE PARKWAY, SUITE 300, DULUTH GA 30097
Nathan Edward Briesemeister	officer: VP, Controller & CAO	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, SUITE 300, DULUTH GA 30097
Terry Hilliard C. Iii	director	ONE SW COLUMBIA ST STE 1200, PORTLAND OR 97258
Michael Welch	officer: SVP & CFO	C/O ASBURY AUTOMOTIVE GROUP, 2905 PREMIERE PKWY, SUITE 300, DULUTH GA 30097
David C Abrams	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
Abrams Capital Partners Ii, L.p.	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
Abrams Capital, Llc	10 percent owner	222 BERKELEY ST., 21ST FLOOR, BOSTON MA 02116
Abrams Capital Management, L.p.	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116
Abrams Capital Management, Llc	10 percent owner	222 BERKELEY STREET, 21ST FLOOR, BOSTON MA 02116