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WP Energy PCL (BKK:WP) Gross Margin % : 3.57% (As of Dec. 2023)


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What is WP Energy PCL Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. WP Energy PCL's Gross Profit for the three months ended in Dec. 2023 was ฿168 Mil. WP Energy PCL's Revenue for the three months ended in Dec. 2023 was ฿4,699 Mil. Therefore, WP Energy PCL's Gross Margin % for the quarter that ended in Dec. 2023 was 3.57%.

Warning Sign:

WP Energy PCL gross margin has been in long-term decline. The average rate of decline per year is -6.6%.


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

BKK:WP' s Gross Margin % Range Over the Past 10 Years
Min: 3.2   Med: 4.47   Max: 5.64
Current: 3.78


During the past 10 years, the highest Gross Margin % of WP Energy PCL was 5.64%. The lowest was 3.20%. And the median was 4.47%.

BKK:WP's Gross Margin % is ranked worse than
95.62% of 502 companies
in the Utilities - Regulated industry
Industry Median: 29.185 vs BKK:WP: 3.78

WP Energy PCL had a gross margin of 3.57% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for WP Energy PCL was -6.60% per year.


WP Energy PCL Gross Margin % Historical Data

The historical data trend for WP Energy PCL'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.

WP Energy PCL Gross Margin % Chart

WP Energy PCL 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 5.18 5.40 5.06 4.74 3.75

WP Energy PCL Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 3.65 4.16 3.81 3.61 3.57

Competitive Comparison of WP Energy PCL's Gross Margin %

For the Utilities - Regulated Gas subindustry, WP Energy PCL'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.


WP Energy PCL's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, WP Energy PCL's Gross Margin % distribution charts can be found below:

* The bar in red indicates where WP Energy PCL's Gross Margin % falls into.



WP Energy PCL Gross Margin % Calculation

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

WP Energy PCL'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 )
=672.4 / 17933.085
=(Revenue - Cost of Goods Sold) / Revenue
=(17933.085 - 17260.655) / 17933.085
=3.75 %

WP Energy PCL'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 )
=167.7 / 4699.107
=(Revenue - Cost of Goods Sold) / Revenue
=(4699.107 - 4531.41) / 4699.107
=3.57 %

* 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.


WP Energy PCL  (BKK:WP) 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

WP Energy PCL had a gross margin of 3.57% 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.


WP Energy PCL Gross Margin % Related Terms

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


WP Energy PCL (BKK:WP) Business Description

Traded in Other Exchanges
N/A
Address
1 East Water Buildings 15th Floor, Soi Viphavadi Rangsit 5, Vibhavadi Rangsit Road, Chom Pon Sub-district, Chatuchak district, Bangkok, THA, 10900
WP Energy PCL is a Thailand-based company engaged in trading of Liquefied Petroleum Gas (LPG), and transportation of oil, gas, and chemical substances. The company distributes its liquefied petroleum gas cylinders to filling plants, gas retail shops, and gas users in commercial and household sectors. It derives a majority of revenue from the trading of Liquefied Petroleum Gas (LPG) activity. The group generates majority of the revenue from Thailand.