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Strathcona Resources (TSX:SCR) Gross Margin % : 26.11% (As of Dec. 2023)


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What is Strathcona Resources Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Strathcona Resources's Gross Profit for the three months ended in Dec. 2023 was C$1,008 Mil. Strathcona Resources's Revenue for the three months ended in Dec. 2023 was C$3,862 Mil. Therefore, Strathcona Resources's Gross Margin % for the quarter that ended in Dec. 2023 was 26.11%.


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

TSX:SCR' s Gross Margin % Range Over the Past 10 Years
Min: 26.28   Med: 30.48   Max: 34.5
Current: 26.28


During the past 2 years, the highest Gross Margin % of Strathcona Resources was 34.50%. The lowest was 26.28%. And the median was 30.48%.

TSX:SCR's Gross Margin % is ranked worse than
52.59% of 928 companies
in the Oil & Gas industry
Industry Median: 27.905 vs TSX:SCR: 26.28

Strathcona Resources had a gross margin of 26.11% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Strathcona Resources was 0.00% per year.


Strathcona Resources Gross Margin % Historical Data

The historical data trend for Strathcona Resources'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.

Strathcona Resources Gross Margin % Chart

Strathcona Resources Annual Data
Trend Dec22 Dec23
Gross Margin %
34.50 26.45

Strathcona Resources Quarterly Data
Sep22 Dec22 Sep23 Dec23
Gross Margin % 53.35 30.58 31.49 26.11

Competitive Comparison of Strathcona Resources's Gross Margin %

For the Oil & Gas E&P subindustry, Strathcona Resources'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.


Strathcona Resources's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Strathcona Resources's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Strathcona Resources's Gross Margin % falls into.



Strathcona Resources Gross Margin % Calculation

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

Strathcona Resources'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 )
=1120.8 / 4237.7
=(Revenue - Cost of Goods Sold) / Revenue
=(4237.7 - 3116.9) / 4237.7
=26.45 %

Strathcona Resources'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 )
=1008.2 / 3861.938
=(Revenue - Cost of Goods Sold) / Revenue
=(3861.938 - 2853.763) / 3861.938
=26.11 %

* 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.


Strathcona Resources  (TSX:SCR) 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

Strathcona Resources had a gross margin of 26.11% for the quarter that ended in Dec. 2023 => 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.


Strathcona Resources Gross Margin % Related Terms

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Strathcona Resources (TSX:SCR) Business Description

Traded in Other Exchanges
Address
421 7th Avenue South west, 1900, Calgary, AB, CAN, T2P4K9
Strathcona Resources Ltd is an energy company, it is a consolidator and developer of oil and gas assets. The company focuses on thermal oil, enhanced oil recovery, and condensate-rich Montney.