Eagers Automotive (ASX:APE) Gross Margin % : 18.81% (As of Dec. 2023)

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What is Eagers Automotive Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Eagers Automotive's Gross Profit for the six months ended in Dec. 2023 was A$947 Mil. Eagers Automotive's Revenue for the six months ended in Dec. 2023 was A$5,034 Mil. Therefore, Eagers Automotive's Gross Margin % for the quarter that ended in Dec. 2023 was 18.81%.

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

ASX:APE' s Gross Margin % Range Over the Past 10 Years
Min: 16.65 Med: 17.45 Max: 19.21
Current: 18.71

During the past 13 years, the highest Gross Margin % of Eagers Automotive was 19.21%. The lowest was 16.65%. And the median was 17.45%.

ASX:APE's Gross Margin % is ranked worse than
52.84% of 1266 companies
in the Vehicles & Parts industry
Industry Median: 19.675 vs ASX:APE: 18.71

Eagers Automotive had a gross margin of 18.81% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Eagers Automotive was 2.30% per year.

Eagers Automotive Gross Margin % Historical Data

The historical data trend for Eagers Automotive'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.

Eagers Automotive Gross Margin % Chart

Eagers Automotive Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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17.02

17.94

18.70

19.21

18.71

Eagers Automotive 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															19.21	18.84	19.57	18.61	18.81

Competitive Comparison of Eagers Automotive's Gross Margin %

For the Auto & Truck Dealerships subindustry, Eagers Automotive'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.

Eagers Automotive's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Eagers Automotive's Gross Margin % distribution charts can be found below:

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

Eagers Automotive Gross Margin % Calculation

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

Eagers Automotive'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 )
	=	1843.3	/	9851.681
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9851.681 - 8008.334)	/	9851.681
	=	18.71 %

Eagers Automotive'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 )
	=	946.8	/	5034.052
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5034.052 - 4087.21)	/	5034.052
	=	18.81 %

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.

Eagers Automotive (ASX:APE) 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

Eagers Automotive had a gross margin of 18.81% for the quarter that ended in Dec. 2023 => No sustainable 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.

Eagers Automotive Gross Margin % Related Terms

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Eagers Automotive (ASX:APE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Eagers Automotive Ltd (ASX:APE) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

56 Edmondstone Street, Bowen Hills, Fortitude Valley, P.O. Box 199, Brisbane, QLD, AUS, 4006

Website

https://www.eagersautomotive.com.au

Eagers Automotive is the largest automotive retailing group in the Australian market, with an estimated share of over 11% of new vehicle sales. The company offers a range of products and services, including the sale of new and used vehicles, vehicle repair services, and parts, among others. The company also facilitates vehicle financing through third-party providers. Additionally, Eagers operates a truck retailing business, offering a similar range of products and services.