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Swisscom AG (Swisscom AG) Gross Margin % : 81.08% (As of Dec. 2023)


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What is Swisscom AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Swisscom AG's Gross Profit for the three months ended in Dec. 2023 was $2,691 Mil. Swisscom AG's Revenue for the three months ended in Dec. 2023 was $3,319 Mil. Therefore, Swisscom AG's Gross Margin % for the quarter that ended in Dec. 2023 was 81.08%.


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

SCMWY' s Gross Margin % Range Over the Past 10 Years
Min: 78.72   Med: 80.76   Max: 84.04
Current: 81.21


During the past 13 years, the highest Gross Margin % of Swisscom AG was 84.04%. The lowest was 78.72%. And the median was 80.76%.

SCMWY's Gross Margin % is ranked better than
91.24% of 354 companies
in the Telecommunication Services industry
Industry Median: 48.97 vs SCMWY: 81.21

Swisscom AG had a gross margin of 81.08% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Swisscom AG was 0.60% per year.


Swisscom AG Gross Margin % Historical Data

The historical data trend for Swisscom AG'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.

Swisscom AG Gross Margin % Chart

Swisscom AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 79.87 80.15 80.50 81.11 81.25

Swisscom AG Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial 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 79.77 78.49 83.98 81.32 81.08

Competitive Comparison of Swisscom AG's Gross Margin %

For the Telecom Services subindustry, Swisscom AG'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.


Swisscom AG's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Swisscom AG's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Swisscom AG's Gross Margin % falls into.



Swisscom AG Gross Margin % Calculation

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

Swisscom AG'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 )
=10402.4 / 12802.96
=(Revenue - Cost of Goods Sold) / Revenue
=(12802.96 - 2400.555) / 12802.96
=81.25 %

Swisscom AG'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 )
=2690.8 / 3318.686
=(Revenue - Cost of Goods Sold) / Revenue
=(3318.686 - 627.89) / 3318.686
=81.08 %

* 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.


Swisscom AG  (OTCPK:SCMWY) 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

Swisscom AG had a gross margin of 81.08% 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.


Swisscom AG Gross Margin % Related Terms

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Swisscom AG (Swisscom AG) Business Description

Address
Alte Tiefenaustrasse 6, 3048 Worblaufen, Ittigen, Bern, CHE, CH-3050
Swisscom is the incumbent telecom operator in Switzerland, with a high market share in mobile and fixed-line markets. It charges high prices compared with its competitors and other European peers due to the historical stability of the Swiss telecom market and a favorable regulatory environment. It also owns Fastweb in Italy, which has a broadband network and operates as a wireless reseller.

Swisscom AG (Swisscom AG) Headlines

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