Hydro One (TSX:H) Gross Margin % : 34.53% (As of Mar. 2024)

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What is Hydro One Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hydro One's Gross Profit for the three months ended in Mar. 2024 was C$748 Mil. Hydro One's Revenue for the three months ended in Mar. 2024 was C$2,166 Mil. Therefore, Hydro One's Gross Margin % for the quarter that ended in Mar. 2024 was 34.53%.

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

TSX:H' s Gross Margin % Range Over the Past 10 Years
Min: 29.58 Med: 33.99 Max: 36.18
Current: 35.91

During the past 13 years, the highest Gross Margin % of Hydro One was 36.18%. The lowest was 29.58%. And the median was 33.99%.

TSX:H's Gross Margin % is ranked better than
62.35% of 502 companies
in the Utilities - Regulated industry
Industry Median: 29.185 vs TSX:H: 35.91

Hydro One had a gross margin of 34.53% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Hydro One was 1.30% per year.

Hydro One Gross Margin % Historical Data

The historical data trend for Hydro One'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.

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Hydro One Gross Margin % Chart

Hydro One Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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33.77

32.46

35.07

35.96

36.18

Hydro One Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															35.49	38.93	40.69	29.91	34.53

Competitive Comparison of Hydro One's Gross Margin %

For the Utilities - Regulated Electric subindustry, Hydro One'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.

Hydro One's Gross Margin % Distribution in the Utilities - Regulated Industry

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

* The bar in red indicates where Hydro One's Gross Margin % falls into.

Hydro One Gross Margin % Calculation

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

Hydro One'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 )
	=	2838	/	7844
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7844 - 5006)	/	7844
	=	36.18 %

Hydro One's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	748	/	2166
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2166 - 1418)	/	2166
	=	34.53 %

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.

Hydro One (TSX:H) 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

Hydro One had a gross margin of 34.53% 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.

Hydro One Gross Margin % Related Terms

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Hydro One (TSX:H) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Hydro One Ltd (TSX:H) » Definitions » Gross Margin %

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Traded in Other Exchanges

HRNNF:USA 8H1:Germany

Address

483 Bay Street, South Tower, 8th Floor, Toronto, ON, CAN, M5G 2P5

Website

https://www.hydroone.com

Hydro One operates regulated transmission and distribution assets in Ontario. The area's largest electricity provider serves nearly 1.5 million customers. Transmission accounts for roughly 60% of the company's rate base, with distribution accounting for the remainder. Hydro One operates a small telecom business with annual revenue contributing less than 1% to consolidated results. The province of Ontario holds an approximate 47% common equity stake.