Rolls-Royce Holdings (Rolls-Royce Holdings) Gross Margin %

: 21.90% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Rolls-Royce Holdings's Gross Profit for the six months ended in Dec. 2023 was $2,485 Mil. Rolls-Royce Holdings's Revenue for the six months ended in Dec. 2023 was $11,346 Mil. Therefore, Rolls-Royce Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 21.90%.

The historical rank and industry rank for Rolls-Royce Holdings's Gross Margin % or its related term are showing as below:

RYCEF' s Gross Margin % Range Over the Past 10 Years
Min: -1.63 Med: 19.71 Max: 23.88
Current: 21.96

During the past 13 years, the highest Gross Margin % of Rolls-Royce Holdings was 23.88%. The lowest was -1.63%. And the median was 19.71%.

RYCEF's Gross Margin % is ranked worse than
60.27% of 297 companies
in the Aerospace & Defense industry
Industry Median: 26.36 vs RYCEF: 21.96

Rolls-Royce Holdings had a gross margin of 21.90% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Rolls-Royce Holdings was 0.00% per year.

Rolls-Royce Holdings Gross Margin % Historical Data

The historical data trend for Rolls-Royce Holdings'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.

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Rolls-Royce Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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5.68

-1.63

19.04

20.39

21.96

Rolls-Royce Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															21.82	18.96	21.40	22.03	21.90

Competitive Comparison

For the Aerospace & Defense subindustry, Rolls-Royce Holdings'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.

Rolls-Royce Holdings Gross Margin % Distribution

For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Rolls-Royce Holdings's Gross Margin % falls into.

Rolls-Royce Holdings Gross Margin % Calculation

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

Rolls-Royce Holdings'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 )
	=	4582.3	/	20868.354
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(20868.354 - 16286.076)	/	20868.354
	=	21.96 %

Rolls-Royce Holdings'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 )
	=	2484.8	/	11345.57
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11345.57 - 8860.76)	/	11345.57
	=	21.90 %

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.

Rolls-Royce Holdings (OTCPK:RYCEF) 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

Rolls-Royce Holdings had a gross margin of 21.90% for the quarter that ended in Dec. 2023 => 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.

Rolls-Royce Holdings Gross Margin % Related Terms

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Rolls-Royce Holdings (Rolls-Royce Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Rolls-Royce Holdings PLC (OTCPK:RYCEF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

RYCEY:USA RLLCF.PFD:USA RRl:UK RR.:UK RRU:Germany

Address

90 York Way, Kings Place, London, GBR, N1 9FX

Website

https://www.rolls-royce.com

Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.