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Telecomunicacoes Brasileiras (BSP:TELB3) Gross Margin % : -40.49% (As of Sep. 2023)


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What is Telecomunicacoes Brasileiras Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Telecomunicacoes Brasileiras's Gross Profit for the three months ended in Sep. 2023 was R$-44.0 Mil. Telecomunicacoes Brasileiras's Revenue for the three months ended in Sep. 2023 was R$108.8 Mil. Therefore, Telecomunicacoes Brasileiras's Gross Margin % for the quarter that ended in Sep. 2023 was -40.49%.


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

BSP:TELB3' s Gross Margin % Range Over the Past 10 Years
Min: -259.6   Med: -76.17   Max: -17.99
Current: -45


During the past 13 years, the highest Gross Margin % of Telecomunicacoes Brasileiras was -17.99%. The lowest was -259.60%. And the median was -76.17%.

BSP:TELB3's Gross Margin % is ranked worse than
100% of 351 companies
in the Telecommunication Services industry
Industry Median: 49.13 vs BSP:TELB3: -45.00

Telecomunicacoes Brasileiras had a gross margin of -40.49% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Telecomunicacoes Brasileiras was 13.30% per year.


Telecomunicacoes Brasileiras Gross Margin % Historical Data

The historical data trend for Telecomunicacoes Brasileiras'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.

Telecomunicacoes Brasileiras Gross Margin % Chart

Telecomunicacoes Brasileiras Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -59.22 -104.60 -71.84 -80.49 -53.90

Telecomunicacoes Brasileiras Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Sep23
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 -52.14 -43.68 -51.84 -43.70 -40.49

Competitive Comparison of Telecomunicacoes Brasileiras's Gross Margin %

For the Telecom Services subindustry, Telecomunicacoes Brasileiras'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.


Telecomunicacoes Brasileiras's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telecomunicacoes Brasileiras's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Telecomunicacoes Brasileiras's Gross Margin % falls into.



Telecomunicacoes Brasileiras Gross Margin % Calculation

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

Telecomunicacoes Brasileiras's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=-187.5 / 347.84
=(Revenue - Cost of Goods Sold) / Revenue
=(347.84 - 535.312) / 347.84
=-53.90 %

Telecomunicacoes Brasileiras's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=-44 / 108.751
=(Revenue - Cost of Goods Sold) / Revenue
=(108.751 - 152.78) / 108.751
=-40.49 %

* 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.


Telecomunicacoes Brasileiras  (BSP:TELB3) 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

Telecomunicacoes Brasileiras had a gross margin of -40.49% for the quarter that ended in Sep. 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.


Telecomunicacoes Brasileiras Gross Margin % Related Terms

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


Telecomunicacoes Brasileiras (BSP:TELB3) Business Description

Traded in Other Exchanges
Address
Commercial Sector South - Quadra 09 - Bloco B, Rooms 301-405, Building Corporate Park City - Tower B, Brasilia, DF, BRA, 70308200
Telecomunicacoes Brasileiras SA is a Brazil-based company. Along with its subsidiaries, the firm offers telecommunication services in the areas of fixed line and mobile communication and internet access services. Its product portfolio includes IP (Internet Protocol) Telebras, Telebras Point-to-Point, and Telebras MPLS (Multiprotocol Label Switching) Network. The company also provides broadband services and infrastructure support services.

Telecomunicacoes Brasileiras (BSP:TELB3) Headlines

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