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BKW AG (XSWX:BKW) Gross Margin % : 49.96% (As of Dec. 2023)


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What is BKW AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. BKW AG's Gross Profit for the six months ended in Dec. 2023 was CHF1,051 Mil. BKW AG's Revenue for the six months ended in Dec. 2023 was CHF2,104 Mil. Therefore, BKW AG's Gross Margin % for the quarter that ended in Dec. 2023 was 49.96%.

Warning Sign:

BKW AG gross margin has been in long-term decline. The average rate of decline per year is -2.1%.


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

XSWX:BKW' s Gross Margin % Range Over the Past 10 Years
Min: 38.08   Med: 50.04   Max: 57.69
Current: 50.49


During the past 13 years, the highest Gross Margin % of BKW AG was 57.69%. The lowest was 38.08%. And the median was 50.04%.

XSWX:BKW's Gross Margin % is ranked better than
67.86% of 392 companies
in the Utilities - Independent Power Producers industry
Industry Median: 34.615 vs XSWX:BKW: 50.49

BKW AG had a gross margin of 49.96% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for BKW AG was -2.10% per year.


BKW AG Gross Margin % Historical Data

The historical data trend for BKW AG'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.

BKW AG Gross Margin % Chart

BKW AG 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 57.69 56.16 48.59 49.59 50.49

BKW AG Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 43.26 47.81 50.96 50.97 49.96

Competitive Comparison of BKW AG's Gross Margin %

For the Utilities - Renewable subindustry, BKW AG'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.


BKW AG's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, BKW AG's Gross Margin % distribution charts can be found below:

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



BKW AG Gross Margin % Calculation

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

BKW AG'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 )
=2238 / 4432.7
=(Revenue - Cost of Goods Sold) / Revenue
=(4432.7 - 2194.7) / 4432.7
=50.49 %

BKW AG'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 )
=1051 / 2103.7
=(Revenue - Cost of Goods Sold) / Revenue
=(2103.7 - 1052.7) / 2103.7
=49.96 %

* 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.


BKW AG  (XSWX:BKW) 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

BKW AG had a gross margin of 49.96% 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.


BKW AG Gross Margin % Related Terms

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BKW AG (XSWX:BKW) Business Description

Traded in Other Exchanges
Address
Viktoriaplatz 2, Bern, CHE, CH-3013
BKW AG is an electric utility company in which the Swiss state of Bern holds a majority stake. The company segments its operations into energy, grid, and services businesses. The energy division builds, operates, and maintains the company's European power plants. While BKW controls a portfolio of wind, hydroelectric, gas, coal, and nuclear facilities, its wind power sites are responsible for most of its total energy generation. The majority of BKW's revenue comes from its energy division in the form of electricity sales to the broader European market and other power plants. The company's networks division, which builds and operates electrical distribution grids for customers outside of its primary markets of Switzerland and Italy, also represents a substantial revenue stream.

BKW AG (XSWX:BKW) Headlines

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