Gross Margin % is calculated as gross profit divided by its revenue. Rheinmetall AG's Gross Profit for the
three
months ended in Sep. 2023 was €924 Mil. Rheinmetall AG's Revenue for the
three
months ended in Sep. 2023 was €1,758 Mil. Therefore, Rheinmetall AG's Gross Margin % for the quarter that ended in Sep. 2023 was 52.56%.
The historical rank and industry rank for Rheinmetall AG's Gross Margin % or its related term are showing as below:
XTER:RHM'
s Gross Margin % Range Over the Past 10 Years
Min: 45.71 Med: 47.9 Max: 53.55
Current: 53.23
During the past 13 years, the highestGross Margin % of Rheinmetall AG was 53.55%. The lowest was 45.71%. And the median was 47.90%.
XTER:RHM's Gross Margin % is ranked better than 84.85% of 297
companies
in the Aerospace & Defense industry
Industry Median: 26.41
vs XTER:RHM: 53.23
Rheinmetall AG had a gross margin of 52.56% for the quarter that ended in Sep. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Rheinmetall AG was 2.80% per year.
Rheinmetall AG Gross Margin % Historical Data
The historical data trend for Rheinmetall 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.
For the Aerospace & Defense subindustry, Rheinmetall 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.
Rheinmetall AG Gross Margin % Distribution
For the Aerospace & Defense industry and Industrials sector, Rheinmetall AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rheinmetall AG's Gross Margin % falls into.
* 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.
Rheinmetall AG (XTER:RHM) 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
Rheinmetall AG had a gross margin of 52.56% 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.
Rheinmetall AG Gross Margin % Related Terms
Thank you for viewing the detailed overview of Rheinmetall AG's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Rheinmetall is an international group active in various markets with leading technological products and services. The sales focus is on the security technology and mobility segments. Since February 2021, the group structure has been made up of five divisions—vehicle systems, weapon and ammunition, electronic solutions, sensors and actuators, and materials and trade. The vehicle systems, weapon and ammunition, and electronic solutions divisions are among the defense and security industry's leading suppliers of innovative products to German and international defense forces. The sensors and actuators and materials and trade divisions' core area of expertise is the reduction of emissions, pollutants, and fuel consumption.
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