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General Electric Co Gross Margin %

: 27.28% (As of Sep. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. General Electric Co's Gross Profit for the three months ended in Sep. 2021 was $5,027 Mil. General Electric Co's Revenue for the three months ended in Sep. 2021 was $18,429 Mil. Therefore, General Electric Co's Gross Margin % for the quarter that ended in Sep. 2021 was 27.28%.


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

NYSE:GE' s Gross Margin % Range Over the Past 10 Years
Min: 23.86   Med: 28.14   Max: 51.74
Current: 26.39

23.86
51.74

During the past 13 years, the highest Gross Margin % of General Electric Co was 51.74%. The lowest was 23.86%. And the median was 28.14%.

NYSE:GE's Gross Margin % is ranked lower than
51% of the 2617 Companies
in the Industrial Products industry.

( Industry Median: 26.71 vs. NYSE:GE: 26.39 )

General Electric Co had a gross margin of 27.28% for the quarter that ended in Sep. 2021 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for General Electric Co was -0.80% per year.


General Electric Co Gross Margin % Historical Data

The historical data trend for General Electric Co'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.

General Electric Co Annual Data
Trend 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 26.63 23.86 28.46 29.73 24.11

General Electric Co Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 24.22 26.12 26.76 25.50 27.28

Competitive Comparison

For the Specialty Industrial Machinery subindustry, General Electric Co'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.

   

General Electric Co Gross Margin % Distribution

For the Industrial Products industry and Industrials sector, General Electric Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where General Electric Co's Gross Margin % falls into.



General Electric Co Gross Margin % Calculation

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

General Electric Co'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 )
=19198 / 79619
=(Revenue - Cost of Goods Sold) / Revenue
=(79619 - 60421) / 79619
=24.11 %

General Electric Co's Gross Margin for the quarter that ended in Sep. 2021 is calculated as


Gross Margin % (Q: Sep. 2021 )=Gross Profit (Q: Sep. 2021 ) / Revenue (Q: Sep. 2021 )
=5027 / 18429
=(Revenue - Cost of Goods Sold) / Revenue
=(18429 - 13402) / 18429
=27.28 %

* 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.


General Electric Co  (NYSE:GE) 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

General Electric Co had a gross margin of 27.28% for the quarter that ended in Sep. 2021 => 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.


General Electric Co Gross Margin % Related Terms

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


General Electric Co Business Description

General Electric Co logo
Industry
Industrials » Industrial Products NAICS : 335312 SIC : 3621
Address
5 Necco Street, Boston, MA, USA, 02210
GE was formed through the combination of two companies in 1892, including one with historical ties to American inventor Thomas Edison. Today, GE is a global leader in air travel, precision health, and in the energy transition. The company is known for its differentiated technology and its massive industrial installed base of equipment sprawled throughout the world. That installed base most notably includes aerospace engines, gas and steam turbines, onshore and offshore wind turbines, as well as medical diagnostic and mobile equipment. GE earns most of its profits on the service revenue of that equipment, which is generally higher-margin. The company is led by former Danaher alum Larry Culp who is leading a multi-year turnaround of the storied conglomerate based on Lean principles.
Executives
Horton Thomas W director 4333 AMON CARTER BLVD. FORTH WORTH TX 76155
Rosput Paula G director 605 HILLSIDE DRIVE EAST SEATTLE WA 98112
Trian Fund Management, L.p. director 280 PARK AVENUE 41ST FLOOR NEW YORK NY 10017
Garden Edward P director 280 PARK AVE 41ST FL NEW YORK NY 10017
Lavizzo-mourey Risa J director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Tisch James S director 667 MADISON AVE NEW YORK NY 10021
Bazin Sebastien director 5 NECCO STREET 5 NECCO STREET BOSTON MA 02210
Dsouza Francisco director 500 GLENPOINTE CENTRE W TEANECK NJ 07666
Seidman Leslie director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Lesjak Catherine A director 1501 PAGE MILL RD PALO ALTO CA 94304
Carter Ashton B director C/O DELTA AIR LINES, INC. P.O. BOX 20574, DEPT. 981 ATLANTA GA 30320
Pecresse Jerome officer: Senior Vice President 5 NECCO STREET BOSTON MA 02210
Murphy Kieran Pius officer: Senior Vice President THE GROVE CENTRE,WHITE LION ROAD LITTLE CHALFONT X0 HP7 9LL
Joyce David Leon officer: Vice Chairman GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Stokes Russell officer: Senior Vice President 5 NECCO STREET BOSTON MA 02210

General Electric Co Headlines

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