Gross Margin % is calculated as gross profit divided by its revenue. APi Group's Gross Profit for the
three
months ended in Mar. 2024 was $492 Mil. APi Group's Revenue for the
three
months ended in Mar. 2024 was $1,601 Mil. Therefore, APi Group's Gross Margin % for the quarter that ended in Mar. 2024 was 30.73%.
The historical rank and industry rank for APi Group's Gross Margin % or its related term are showing as below:
APG'
s Gross Margin % Range Over the Past 10 Years
Min: 21.08 Med: 23.83 Max: 29.02
Current: 29.02
During the past 6 years, the highestGross Margin % of APi Group was 29.02%. The lowest was 21.08%. And the median was 23.83%.
APG's Gross Margin % is ranked better than 67.89% of 1613
companies
in the Construction industry
Industry Median: 19.33
vs APG: 29.02
APi Group had a gross margin of 30.73% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for APi Group was 0.00% per year.
APi Group Gross Margin % Historical Data
The historical data trend for APi Group'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.
Competitive Comparison of APi Group's Gross Margin %
For the Engineering & Construction subindustry, APi Group'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.
APi Group's Gross Margin % Distribution in the Construction Industry
For the Construction industry and Industrials sector, APi Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where APi Group'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.
APi Group (NYSE:APG) 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
APi Group had a gross margin of 30.73% for the quarter that ended in Mar. 2024 => 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.
APi Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of APi Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
APi Group Corp operates in two operating segments, 1) Safety Services segment includes providing safety services in North America, Asia Pacific, and Europe, focusing on end-to-end integrated occupancy systems (fire protection solutions, Heating, Ventilation, and Air Conditioning and entry systems), including design, installation, inspection, and service of these integrated systems. These services are provided in commercial, education, healthcare, high tech, industrial, and special-hazard settings. 2) Specialty Services segment includes providing a variety of infrastructure services and specialized industrial plant services, which include maintenance and repair of critical infrastructure such as underground electric, gas, water, sewer, and telecommunications infrastructure.
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