Gross Margin % is calculated as gross profit divided by its revenue. Sanoma Oyj's Gross Profit for the
three
months ended in Mar. 2024 was €155 Mil. Sanoma Oyj's Revenue for the
three
months ended in Mar. 2024 was €221 Mil. Therefore, Sanoma Oyj's Gross Margin % for the quarter that ended in Mar. 2024 was 70.21%.
Warning Sign:
Sanoma Oyj gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Sanoma Oyj's Gross Margin % or its related term are showing as below:
OHEL:SANOMA'
s Gross Margin % Range Over the Past 10 Years
Min: 64.72 Med: 67.63 Max: 69.98
Current: 65.66
During the past 13 years, the highestGross Margin % of Sanoma Oyj was 69.98%. The lowest was 64.72%. And the median was 67.63%.
OHEL:SANOMA's Gross Margin % is ranked better than 80.6% of 964
companies
in the Media - Diversified industry
Industry Median: 38.52
vs OHEL:SANOMA: 65.66
Sanoma Oyj had a gross margin of 70.21% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sanoma Oyj was -1.20% per year.
Sanoma Oyj Gross Margin % Historical Data
The historical data trend for Sanoma Oyj'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 Sanoma Oyj's Gross Margin %
For the Publishing subindustry, Sanoma Oyj'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.
Sanoma Oyj's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Sanoma Oyj's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sanoma Oyj'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.
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
Sanoma Oyj had a gross margin of 70.21% for the quarter that ended in Mar. 2024 => Durable 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.
Sanoma Oyj Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sanoma Oyj's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sanoma Oyj is an innovative and agile learning and media company. The group publishes magazines and newspapers along with educational learning literature and services. It operates in two segments: Learning and Media Finland. Sanoma's learning products and services enable teachers to develop the talents of every child to reach their full potential. The company offers printed and digital learning content as well as digital learning and teaching platforms for primary, secondary, and vocational education. The Finnish media business of Sanoma provides information, experiences, inspiration, and entertainment via multiple media platforms: newspapers, radio, television, events, magazines, online, and mobile channels. The company's publications include Helsingin Sanomat, IltaSanomat among others.
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