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Telefonica (Telefonica) Gross Margin % : 0.00% (As of Dec. 2023)


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What is Telefonica Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Telefonica's Gross Profit for the three months ended in Dec. 2023 was $11,072 Mil. Telefonica's Revenue for the three months ended in Dec. 2023 was $11,072 Mil. Therefore, Telefonica's Gross Margin % for the quarter that ended in Dec. 2023 was 0.00%. If there's no value for Cost of Goods Sold, then Gross Margin % is not calculated.

Warning Sign:

Telefonica SA gross margin has been in long-term decline. The average rate of decline per year is -1.3%.


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


During the past 13 years, the highest Gross Margin % of Telefonica was 73.68%. The lowest was 69.26%. And the median was 71.70%.

TEF's Gross Margin % is not ranked *
in the Telecommunication Services industry.
Industry Median: 48.98
* Ranked among companies with meaningful Gross Margin % only.

Telefonica had a gross margin of N/A% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Telefonica was -1.30% per year.


Telefonica Gross Margin % Historical Data

The historical data trend for Telefonica'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.

Telefonica Gross Margin % Chart

Telefonica 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 73.68 71.81 70.75 69.60 69.26

Telefonica 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 66.49 - - - -

Competitive Comparison of Telefonica's Gross Margin %

For the Telecom Services subindustry, Telefonica'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.


Telefonica's Gross Margin % Distribution in the Telecommunication Services Industry

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

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



Telefonica Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue. (Note that if there's no value for Cost of Goods Sold, then Gross Margin % is not calculated.)

Telefonica'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 )
=30705.6 / 44331.516
=(Revenue - Cost of Goods Sold) / Revenue
=(44331.516 - 13625.954) / 44331.516
=69.26 %

Telefonica'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 )
=11072 / 11071.974
=(Revenue - Cost of Goods Sold) / Revenue
=(11071.974 - 0) / 11071.974
=N/A %

* 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.


Telefonica  (NYSE:TEF) 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

Telefonica had a gross margin of N/A% 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.


Telefonica Gross Margin % Related Terms

Thank you for viewing the detailed overview of Telefonica's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Telefonica (Telefonica) Business Description

Address
Ronda de la Comunicacion, s/n, Central Building Auditorium, Floor 3, Telefonica District, Madrid, ESP, 28050
Telefonica operates mobile and fixed networks in Spain (where it is the incumbent telephone operator), the U.K., Germany, Brazil, and other Latin American countries like Colombia, Mexico, Argentina, and Chile, among others. The company derives more than 30% of its revenue from Spain, close to 20% from Germany and 20% from Brazil. Its U.K. operations are held through a joint venture with Virgin Media. For several years Telefonica has been simplifying its corporate structure by selling noncore assets.

Telefonica (Telefonica) Headlines

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