Gross Margin % is calculated as gross profit divided by its revenue. Altice USA's Gross Profit for the
three
months ended in Dec. 2023 was $1,556 Mil. Altice USA's Revenue for the
three
months ended in Dec. 2023 was $2,302 Mil. Therefore, Altice USA's Gross Margin % for the quarter that ended in Dec. 2023 was 67.62%.
The historical rank and industry rank for Altice USA's Gross Margin % or its related term are showing as below:
ATUS'
s Gross Margin % Range Over the Past 10 Years
Min: 66.19 Med: 66.8 Max: 68.24
Current: 67.2
During the past 8 years, the highestGross Margin % of Altice USA was 68.24%. The lowest was 66.19%. And the median was 66.80%.
ATUS's Gross Margin % is ranked better than 77.12% of 354
companies
in the Telecommunication Services industry
Industry Median: 48.98
vs ATUS: 67.20
Altice USA had a gross margin of 67.62% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Altice USA was 0.20% per year.
Altice USA Gross Margin % Historical Data
The historical data trend for Altice USA'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.
Competitive Comparison of Altice USA's Gross Margin %
For the Telecom Services subindustry, Altice USA'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.
Altice USA's Gross Margin % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Altice USA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Altice USA's Gross Margin % falls into.
* 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.
Altice USA (NYSE:ATUS) 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
Altice USA had a gross margin of 67.62% 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.
Altice USA Gross Margin % Related Terms
Thank you for viewing the detailed overview of Altice USA's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Altice Europe acquired privately held U.S. cable company Suddenlink in 2015 and Cablevision in 2016. Suddenlink's networks provide television, internet access, and phone services to roughly 3.5 million U.S. homes and businesses located primarily in smaller markets, with major clusters in Texas, West Virginia, Idaho, Arizona, and Louisiana. Cablevision provides comparable services to about 5.5 million homes and business in the New York City metro area. Both regions operate under the Optimum brand name. Altice Europe spun off Altice USA, which includes both the Suddenlink and Cablevision operations, to shareholders in 2018. Altice USA also owns News 12 Networks, which broadcasts local news in New York, i24News, a news operation focused on the Middle East, and Cheddar, a news upstart.
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