Gross Margin % is calculated as gross profit divided by its revenue. Sirius XM Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $1,134 Mil. Sirius XM Holdings's Revenue for the
three
months ended in Dec. 2023 was $2,288 Mil. Therefore, Sirius XM Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 49.56%.
The historical rank and industry rank for Sirius XM Holdings's Gross Margin % or its related term are showing as below:
SIRI'
s Gross Margin % Range Over the Past 10 Years
Min: 48.01 Med: 50.39 Max: 52.07
Current: 49
During the past 13 years, the highestGross Margin % of Sirius XM Holdings was 52.07%. The lowest was 48.01%. And the median was 50.39%.
SIRI's Gross Margin % is ranked better than 66.08% of 964
companies
in the Media - Diversified industry
Industry Median: 38.675
vs SIRI: 49.00
Sirius XM Holdings had a gross margin of 49.56% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sirius XM Holdings was -0.90% per year.
Sirius XM Holdings Gross Margin % Historical Data
The historical data trend for Sirius XM 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.
For the Entertainment subindustry, Sirius XM 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.
Sirius XM Holdings Gross Margin % Distribution
For the Media - Diversified industry and Communication Services sector, Sirius XM Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sirius XM Holdings'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.
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
Sirius XM Holdings had a gross margin of 49.56% 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.
Sirius XM Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sirius XM Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sirius XM Holdings (Sirius XM Holdings) Business Description
Sirius XM Holdings is composed of two businesses: SiriusXM and Pandora. SiriusXM transmits music, talk shows, sports, and news via its two satellite radio networks, primarily to consumers in vehicles who pay a subscription fee. The firm's radios come preinstalled on a wide range of light vehicles in the U.S. and Canada. The firm acquired Pandora Media in February 2019 via an all-stock transaction. Pandora is a streaming music platform that offers an ad-supported radio option and a paid on-demand service as well as a robust and growing podcast library. Liberty Media owns 81% of Sirius XM, traded through its Liberty Sirius XM Group tracking stock.
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