United States Cellular (United States Cellular) Gross Margin % : 53.70% (As of Dec. 2023)

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What is United States Cellular Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. United States Cellular's Gross Profit for the three months ended in Dec. 2023 was $537 Mil. United States Cellular's Revenue for the three months ended in Dec. 2023 was $1,000 Mil. Therefore, United States Cellular's Gross Margin % for the quarter that ended in Dec. 2023 was 53.70%.

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

USM' s Gross Margin % Range Over the Past 10 Years
Min: 49.58 Med: 54.26 Max: 55.76
Current: 55.74

During the past 13 years, the highest Gross Margin % of United States Cellular was 55.76%. The lowest was 49.58%. And the median was 54.26%.

USM's Gross Margin % is ranked better than
58.92% of 353 companies
in the Telecommunication Services industry
Industry Median: 49.04 vs USM: 55.74

United States Cellular had a gross margin of 53.70% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for United States Cellular was -0.30% per year.

United States Cellular Gross Margin % Historical Data

The historical data trend for United States Cellular'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.

United States Cellular Gross Margin % Chart

United States Cellular Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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55.64

55.59

53.71

52.72

55.76

United States Cellular 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															51.38	55.88	56.32	57.11	53.70

Competitive Comparison of United States Cellular's Gross Margin %

For the Telecom Services subindustry, United States Cellular'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.

United States Cellular's Gross Margin % Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where United States Cellular's Gross Margin % falls into.

United States Cellular Gross Margin % Calculation

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

United States Cellular'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 )
	=	2178	/	3906
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3906 - 1728)	/	3906
	=	55.76 %

United States Cellular'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 )
	=	537	/	1000
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1000 - 463)	/	1000
	=	53.70 %

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.

United States Cellular (NYSE:USM) 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

United States Cellular had a gross margin of 53.70% 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.

United States Cellular Gross Margin % Related Terms

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United States Cellular (United States Cellular) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » United States Cellular Corp (NYSE:USM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

US7:Germany

Address

8410 West Bryn Mawr, Chicago, IL, USA, 60631

Website

https://www.uscellular.com

U.S. Cellular is a regional wireless carrier that serves about 5 million customers spread across four major geographic clusters: the Midwest, mid-Atlantic, New England, and the Pacific Northwest. These service territories encompass a total population of about 32 million people. The vast majority of the markets the firm serves are rural or second/third-tier cities, with only the greater Milwaukee and Oklahoma City regions boasting populations greater than 1 million. U.S. Cellular also owns a 5.5% stake in Verizon Wireless' Los Angeles operations and, unlike its wireless carrier peers, owns most of its own towers.

Executives

Michael Irizarry	officer: EVP & CTO-Engineering and IS	8410 W BRYN MAWR, CHICAGO IL 60631
Kevin R Lowell	officer: EVP, Chief People Officer	8410 W. BRYN MAWR AVE, CHICAGO IL 60631
Xavier Williams	director	C/O AMERICAN VIRTUAL CLOUD TECHNOLOGIES, 1720 PEACHTREE ST., SUITE 629, ATLANTA GA 30309
James W Butman	director	30 N. LASALLE STREET, STE. 4000, CHICAGO IL 60602
Gregory P Josefowicz	director	850 76TH STREET SW, GRAND RAPIDS MI 49518
Deirdre Drake	officer: SVP-Chief HR Officer	8410 W. BRYN MAWR AVE, CHICAGO IL 60631
Esteban C Iriarte	director	8410 W. BRYN MAWR, CHICAGO IL 60631
Vicki L Villacrez	director	30 N. LASALLE STREET, SUITE 4000, CHICAGO IL 60602
Ronald E Daly	director
J Samuel Crowley	director	8410 WEST BRYN MAWR ST STE 700, CHICAGO IL 60631
Jay Ellison	officer: EVP-Operations
Laurent C Therivel	director, officer: President and CEO	8410 W. BRYN MAWR STREET, CHICAGO IL 60631
Kenneth R Meyers	director, officer: President and CEO
Anita J Kroll	officer: Chief Accounting Officer	30 N. LASALLE STREET, SUITE 4000, CHICAGO IL 60602
Steven T Campbell	director, officer: EVP-Finance, CFO and Treasurer	8410 W. BRYN MAWR, CHICAGO IL 60631