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Sulzer AG (XSWX:SUN) Gross Margin % : 33.79% (As of Dec. 2023)


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What is Sulzer AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sulzer AG's Gross Profit for the six months ended in Dec. 2023 was CHF568 Mil. Sulzer AG's Revenue for the six months ended in Dec. 2023 was CHF1,680 Mil. Therefore, Sulzer AG's Gross Margin % for the quarter that ended in Dec. 2023 was 33.79%.


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

XSWX:SUN' s Gross Margin % Range Over the Past 10 Years
Min: 29.07   Med: 30.32   Max: 33.05
Current: 33.05


During the past 13 years, the highest Gross Margin % of Sulzer AG was 33.05%. The lowest was 29.07%. And the median was 30.32%.

XSWX:SUN's Gross Margin % is ranked better than
67.89% of 2937 companies
in the Industrial Products industry
Industry Median: 26.42 vs XSWX:SUN: 33.05

Sulzer AG had a gross margin of 33.79% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Sulzer AG was 1.80% per year.


Sulzer AG Gross Margin % Historical Data

The historical data trend for Sulzer 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.

Sulzer AG Gross Margin % Chart

Sulzer 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 30.07 29.40 30.01 29.55 33.05

Sulzer 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 30.13 28.41 30.59 32.27 33.79

Competitive Comparison of Sulzer AG's Gross Margin %

For the Specialty Industrial Machinery subindustry, Sulzer 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.


Sulzer AG's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sulzer AG's Gross Margin % distribution charts can be found below:

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



Sulzer AG Gross Margin % Calculation

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

Sulzer 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 )
=1084.6 / 3281.7
=(Revenue - Cost of Goods Sold) / Revenue
=(3281.7 - 2197.1) / 3281.7
=33.05 %

Sulzer 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 )
=567.7 / 1680.1
=(Revenue - Cost of Goods Sold) / Revenue
=(1680.1 - 1112.4) / 1680.1
=33.79 %

* 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.


Sulzer AG  (XSWX:SUN) 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

Sulzer AG had a gross margin of 33.79% for the quarter that ended in Dec. 2023 => Competition eroding margins


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.


Sulzer AG Gross Margin % Related Terms

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


Sulzer AG (XSWX:SUN) Business Description

Traded in Other Exchanges
Address
Neuwiesenstrasse 15, Winterthur, CHE, 8401
Sulzer AG specializes in pumping solutions, rotating equipment maintenance, and mixing technology. It serves customers operating in the oil and gas, power, and water markets. Pumping solutions focus on transporting and processing oil and derivatives, treating water, and renewable power generation. In addition, the company offers solutions for turbines, compressors, motors, and other rotating components and has technicians to provide maintenance. Sulzer's business segments include Flow Equipment, Services, Chemtech, and Others which primarily serve across the globe. While most of its revenues are generated from its Flow equipment and Services segment.