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Tesco PLC  (OTCPK:TSCDY) Gross Margin %: 5.46% (As of Feb. 2017)

Gross Margin % is calculated as gross profit divided by its revenue. Tesco PLC's Gross Profit for the six months ended in Feb. 2017 was $1,949 Mil. Tesco PLC's Revenue for the six months ended in Feb. 2017 was $35,724 Mil. Therefore, Tesco PLC's Gross Margin % for the quarter that ended in Feb. 2017 was 5.46%.


OTCPK:TSCDY' s Gross Margin % Range Over the Past 10 Years
Min: -3.87   Max: 8.48
Current: 5.19

-3.87
8.48

During the past 13 years, the highest Gross Margin % of Tesco PLC was 8.48%. The lowest was -3.87%. And the median was 7.11%.

OTCPK:TSCDY's Gross Margin % is ranked lower than
97% of the 365 Companies
in the Global industry.

( Industry Median: 24.44 vs. OTCPK:TSCDY: 5.19 )

Tesco PLC had a gross margin of 5.46% for the quarter that ended in Feb. 2017 => No sustainable competitive advantage

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Tesco PLC Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.55 6.31 -3.87 5.27 5.19

Tesco PLC Semi-Annual Data

Aug07 Feb08 Aug08 Feb09 Aug09 Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only -11.29 4.74 5.80 4.91 5.46

Competitive Comparison
* 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.


Calculation

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

Tesco PLC's Gross Margin for the fiscal year that ended in Feb. 2017 is calculated as

Gross Margin % (A: Feb. 2017 )=Gross Profit (A: Feb. 2017 ) / Revenue (A: Feb. 2017 )
=3627.5 / 69896.25
=(Revenue - Cost of Goods Sold) / Revenue
=(69896.25 - 66268.75) / 69896.25
=5.19 %

Tesco PLC's Gross Margin for the quarter that ended in Feb. 2017 is calculated as


Gross Margin % (Q: Feb. 2017 )=Gross Profit (Q: Feb. 2017 ) / Revenue (Q: Feb. 2017 )
=-33775 / 35723.75
=(Revenue - Cost of Goods Sold) / Revenue
=(35723.75 - 33775) / 35723.75
=5.46 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


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

Tesco PLC had a gross margin of 5.46% for the quarter that ended in Feb. 2017 => 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.


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