Seadrill (Seadrill) Gross Margin %

: 19.85% (As of Dec. 2023) 中文

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Gross Margin % is calculated as gross profit divided by its revenue. Seadrill's Gross Profit for the three months ended in Dec. 2023 was $81 Mil. Seadrill's Revenue for the three months ended in Dec. 2023 was $408 Mil. Therefore, Seadrill's Gross Margin % for the quarter that ended in Dec. 2023 was 19.85%.

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

SDRL' s Gross Margin % Range Over the Past 10 Years
Min: -33.61 Med: -10.71 Max: 27.5
Current: 27.5

During the past 5 years, the highest Gross Margin % of Seadrill was 27.50%. The lowest was -33.61%. And the median was -10.71%.

SDRL's Gross Margin % is ranked worse than
50.81% of 923 companies
in the Oil & Gas industry
Industry Median: 27.87 vs SDRL: 27.50

Seadrill had a gross margin of 19.85% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

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

Seadrill Gross Margin % Historical Data

The historical data trend for Seadrill'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.

Seadrill Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

-17.22

-33.61

-4.19

27.50

Seadrill Quarterly Data
	Dec19	Dec20	Jun21	Sep21	Dec21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %								-	24.06	32.85	31.88	19.85

Competitive Comparison

For the Oil & Gas Drilling subindustry, Seadrill'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.

Seadrill Gross Margin % Distribution

For the Oil & Gas industry and Energy sector, Seadrill's Gross Margin % distribution charts can be found below:

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

Seadrill Gross Margin % Calculation

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

Seadrill'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 )
	=	413	/	1502
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1502 - 1089)	/	1502
	=	27.50 %

Seadrill'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 )
	=	81	/	408
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(408 - 327)	/	408
	=	19.85 %

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.

Seadrill (NYSE:SDRL) 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

Seadrill had a gross margin of 19.85% for the quarter that ended in Dec. 2023 => No sustainable 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.

Seadrill Gross Margin % Related Terms

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Seadrill (Seadrill) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Seadrill Ltd (NYSE:SDRL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SDRLo:Sweden SDRL:Norway SDRMo:UK P4F:Germany

Address

566 Chiswick High Road, Chiswick Business Park, Building 11, 2nd Floor, London, GBR, W4 5YS

Website

https://www.seadrill.com

Seadrill Ltd is an offshore drilling contractor company. It engages in providing worldwide offshore drilling services to the oil and gas industry. Its primary business is the ownership and operation of drillships, semi-submersible rigs, and jack-up rigs for operations in shallow to ultra-deepwater areas in both benign and harsh environments. It has three segments Harsh environment, Floaters and Jackups.