Gross Margin % is calculated as gross profit divided by its revenue. Tegna's Gross Profit for the
three
months ended in Dec. 2023 was $303 Mil. Tegna's Revenue for the
three
months ended in Dec. 2023 was $726 Mil. Therefore, Tegna's Gross Margin % for the quarter that ended in Dec. 2023 was 41.70%.
Warning Sign:
Tegna Inc gross margin has been in long-term decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for Tegna's Gross Margin % or its related term are showing as below:
TGNA'
s Gross Margin % Range Over the Past 10 Years
Min: 40.95 Med: 49.89 Max: 63.64
Current: 40.95
During the past 13 years, the highestGross Margin % of Tegna was 63.64%. The lowest was 40.95%. And the median was 49.89%.
TGNA's Gross Margin % is ranked better than 53.84% of 964
companies
in the Media - Diversified industry
Industry Median: 38.675
vs TGNA: 40.95
Tegna had a gross margin of 41.70% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tegna was -3.10% per year.
Tegna Gross Margin % Historical Data
The historical data trend for Tegna'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.
For the Broadcasting subindustry, Tegna'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.
Tegna Gross Margin % Distribution
For the Media - Diversified industry and Communication Services sector, Tegna's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tegna'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.
Tegna (NYSE:TGNA) 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
Tegna had a gross margin of 41.70% 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.
Tegna Gross Margin % Related Terms
Thank you for viewing the detailed overview of Tegna's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tegna Inc is a media company with a portfolio of broadcast stations and digital sites. The firm has around 64 television stations and 2 radio stations in approximately 51 U.S markets. The company owns multicast networks of True Crime Network, Twist and Quest. Each television station also has a robust digital presence across online, mobile, connected television and social platforms, reaching consumers on all devices and platforms they use to consume news content. It generates key revenue from advertising and marketing services, subscription, political advertising, and other services.
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