Gross Margin % is calculated as gross profit divided by its revenue. Sunrun's Gross Profit for the
three
months ended in Dec. 2023 was $34 Mil. Sunrun's Revenue for the
three
months ended in Dec. 2023 was $517 Mil. Therefore, Sunrun's Gross Margin % for the quarter that ended in Dec. 2023 was 6.58%.
Warning Sign:
Sunrun Inc gross margin has been in long-term decline. The average rate of decline per year is -23.3%.
The historical rank and industry rank for Sunrun's Gross Margin % or its related term are showing as below:
RUN'
s Gross Margin % Range Over the Past 10 Years
Min: 7.22 Med: 16.23 Max: 29.61
Current: 7.22
During the past 11 years, the highestGross Margin % of Sunrun was 29.61%. The lowest was 7.22%. And the median was 16.23%.
RUN's Gross Margin % is ranked worse than 89.81% of 972
companies
in the Semiconductors industry
Industry Median: 28.265
vs RUN: 7.22
Sunrun had a gross margin of 6.58% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sunrun was -23.30% per year.
Sunrun Gross Margin % Historical Data
The historical data trend for Sunrun'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.
For the Solar subindustry, Sunrun'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.
Sunrun's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Sunrun's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sunrun'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.
Sunrun (NAS:RUN) 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
Sunrun had a gross margin of 6.58% 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.
Sunrun Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sunrun's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sunrun is engaged in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. The company acquires customers directly and through relationships with various solar and strategic partners. The solar systems are constructed either by Sunrun or by Sunrun's partners and are owned by the company. Sunrun's customers typically enter into 20- to 25-year agreements to utilize its solar energy system. The company also sells solar energy systems and products, such as panels and racking, and solar leads generated to customers.
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