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Redeiaoracion (XMAD:RED) Gross Margin %

: 100.25% (As of Sep. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Redeiaoracion's Gross Profit for the three months ended in Sep. 2023 was €521 Mil. Redeiaoracion's Revenue for the three months ended in Sep. 2023 was €519 Mil. Therefore, Redeiaoracion's Gross Margin % for the quarter that ended in Sep. 2023 was 100.25%.


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

XMAD:RED' s Gross Margin % Range Over the Past 10 Years
Min: 97.31   Med: 100.77   Max: 101.9
Current: 100.59


During the past 13 years, the highest Gross Margin % of Redeiaoracion was 101.90%. The lowest was 97.31%. And the median was 100.77%.

XMAD:RED's Gross Margin % is ranked better than
99.4% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs XMAD:RED: 100.59

Redeiaoracion had a gross margin of 100.25% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Redeiaoracion was 0.20% per year.


Redeiaoracion Gross Margin % Historical Data

The historical data trend for Redeiaoracion'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.

Redeiaoracion Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 101.25 101.27 101.53 101.90 101.28

Redeiaoracion Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 100.42 100.88 100.93 100.32 100.25

Competitive Comparison

For the Utilities - Regulated Electric subindustry, Redeiaoracion'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.


Redeiaoracion Gross Margin % Distribution

For the Utilities - Regulated industry and Utilities sector, Redeiaoracion's Gross Margin % distribution charts can be found below:

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



Redeiaoracion Gross Margin % Calculation

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

Redeiaoracion's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=2040.9 / 2015.036
=(Revenue - Cost of Goods Sold) / Revenue
=(2015.036 - -25.842) / 2015.036
=101.28 %

Redeiaoracion's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=520.6 / 519.291
=(Revenue - Cost of Goods Sold) / Revenue
=(519.291 - -1.285) / 519.291
=100.25 %

* 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.


Redeiaoracion  (XMAD:RED) 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

Redeiaoracion had a gross margin of 100.25% for the quarter that ended in Sep. 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.


Redeiaoracion Gross Margin % Related Terms

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Redeiaoracion (XMAD:RED) Business Description

Address
Paseo del Conde de los Gaitanes, 177, Alcobendas, Madrid, ESP, 28109
Redeia owns and operates the Spanish electric transmission system. The company has acquired almost all of the nation's power grid, which other owners were forced to sell to it by government decree. Its activities are regulated by the National Energy Commission, which answers to the Spanish legislature. Redeia also operates a small fibre-optics network in Spain and has a growing Latin American infrastructure business. The group significantly increased its exposure to telecommunications by acquiring Spanish communications satellite operator Hispasat from Abertis in 2019.

Redeiaoracion (XMAD:RED) Headlines

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