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Shaw Communications (TSX:SJR.PR.A.PFD) Gross Margin % : 57.08% (As of Nov. 2022)


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What is Shaw Communications Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shaw Communications's Gross Profit for the three months ended in Nov. 2022 was C$782.00 Mil. Shaw Communications's Revenue for the three months ended in Nov. 2022 was C$1,370.00 Mil. Therefore, Shaw Communications's Gross Margin % for the quarter that ended in Nov. 2022 was 57.08%.


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

TSX:SJR.PR.A.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 52.92   Med: 58.08   Max: 62.22
Current: 58.63


During the past 13 years, the highest Gross Margin % of Shaw Communications was 62.22%. The lowest was 52.92%. And the median was 58.08%.

TSX:SJR.PR.A.PFD's Gross Margin % is not ranked
in the Telecommunication Services industry.
Industry Median: 48.98 vs TSX:SJR.PR.A.PFD: 58.63

Shaw Communications had a gross margin of 57.08% for the quarter that ended in Nov. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Shaw Communications was 1.10% per year.


Shaw Communications Gross Margin % Historical Data

The historical data trend for Shaw Communications'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.

Shaw Communications Gross Margin % Chart

Shaw Communications Annual Data
Trend Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 53.36 52.92 56.11 57.18 58.76

Shaw Communications Quarterly Data
Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22
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 57.50 59.01 60.33 58.14 57.08

Competitive Comparison of Shaw Communications's Gross Margin %

For the Telecom Services subindustry, Shaw Communications'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.


Shaw Communications's Gross Margin % Distribution in the Telecommunication Services Industry

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

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



Shaw Communications Gross Margin % Calculation

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

Shaw Communications's Gross Margin for the fiscal year that ended in Aug. 2022 is calculated as

Gross Margin % (A: Aug. 2022 )=Gross Profit (A: Aug. 2022 ) / Revenue (A: Aug. 2022 )
=3201 / 5448
=(Revenue - Cost of Goods Sold) / Revenue
=(5448 - 2247) / 5448
=58.76 %

Shaw Communications's Gross Margin for the quarter that ended in Nov. 2022 is calculated as


Gross Margin % (Q: Nov. 2022 )=Gross Profit (Q: Nov. 2022 ) / Revenue (Q: Nov. 2022 )
=782 / 1370
=(Revenue - Cost of Goods Sold) / Revenue
=(1370 - 588) / 1370
=57.08 %

* 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.


Shaw Communications  (TSX:SJR.PR.A.PFD) 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

Shaw Communications had a gross margin of 57.08% for the quarter that ended in Nov. 2022 => 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.


Shaw Communications Gross Margin % Related Terms

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


Shaw Communications (TSX:SJR.PR.A.PFD) Business Description

Traded in Other Exchanges
N/A
Address
630 - 3rd Avenue S.W., Suite 900, Finance Department, Calgary, AB, CAN, T2P 4L4
Shaw Communications is a Canadian cable company that is one of the biggest providers of internet, television, and landline telephone services in British Columbia, Alberta, Saskatchewan, Manitoba, and northern Ontario. In fiscal 2021, more than 75% of Shaw's total revenue resulted from this wireline business. Shaw now also offers wireless service over most of Canada's population footprint after acquiring Wind Mobile in 2016. As a smaller carrier, Shaw has favored bidding status in spectrum auctions, giving it a further boost in enhancing its wireless network. At the 2019 auction, Shaw added significant amounts of 600 MHz spectrum to the 700 MHz spectrum it is currently deploying.

Shaw Communications (TSX:SJR.PR.A.PFD) Headlines

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