Gross Margin % is calculated as gross profit divided by its revenue. AES Andes's Gross Profit for the
three
months ended in Mar. 2024 was CLP126,719 Mil. AES Andes's Revenue for the
three
months ended in Mar. 2024 was CLP523,164 Mil. Therefore, AES Andes's Gross Margin % for the quarter that ended in Mar. 2024 was 24.22%.
Warning Sign:
AES Andes SA gross margin has been in long-term decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for AES Andes's Gross Margin % or its related term are showing as below:
XSGO:AESANDES'
s Gross Margin % Range Over the Past 10 Years
Min: 22.14 Med: 27.17 Max: 35.57
Current: 23.33
During the past 13 years, the highestGross Margin % of AES Andes was 35.57%. The lowest was 22.14%. And the median was 27.17%.
XSGO:AESANDES's Gross Margin % is ranked worse than 65.23% of 394
companies
in the Utilities - Independent Power Producers industry
Industry Median: 35.46
vs XSGO:AESANDES: 23.33
AES Andes had a gross margin of 24.22% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for AES Andes was -3.10% per year.
AES Andes Gross Margin % Historical Data
The historical data trend for AES Andes'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 AES Andes's Gross Margin %
For the Utilities - Renewable subindustry, AES Andes'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.
AES Andes's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, AES Andes's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AES Andes'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.
AES Andes (XSGO:AESANDES) 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
AES Andes had a gross margin of 24.22% 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.
AES Andes Gross Margin % Related Terms
Thank you for viewing the detailed overview of AES Andes's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
AES Andes SA is an electric utility company involved in the generation and supply of electricity in South America. It owns and operates a portfolio of hydroelectric, coal-fired, diesel-fueled, cogeneration, and natural gas power generation facilities. Most of the energy produced by the company comes from its sites utilizing thermal fuel sources. The company primarily generates revenue from contracted energy and capacity sales. Sales made on the spot market also represent a substantial revenue stream. The company's primary customers are the multiple interconnected energy markets in Chile and Colombia, such as the Central Interconnected System (SIC) and the Great North Interconnected System (SING).
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