Gross Margin % is calculated as gross profit divided by its revenue. General Motors Co's Gross Profit for the
three
months ended in Dec. 2023 was $3,309 Mil. General Motors Co's Revenue for the
three
months ended in Dec. 2023 was $42,979 Mil. Therefore, General Motors Co's Gross Margin % for the quarter that ended in Dec. 2023 was 7.70%.
The historical rank and industry rank for General Motors Co's Gross Margin % or its related term are showing as below:
GM'
s Gross Margin % Range Over the Past 10 Years
Min: 8.86 Med: 11.84 Max: 14.08
Current: 11.14
During the past 13 years, the highestGross Margin % of General Motors Co was 14.08%. The lowest was 8.86%. And the median was 11.84%.
GM's Gross Margin % is ranked worse than 79.81% of 1268
companies
in the Vehicles & Parts industry
Industry Median: 19.36
vs GM: 11.14
General Motors Co had a gross margin of 7.70% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for General Motors Co was 5.30% per year.
General Motors Co Gross Margin % Historical Data
The historical data trend for General Motors Co'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 Auto Manufacturers subindustry, General Motors Co'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.
General Motors Co Gross Margin % Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, General Motors Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where General Motors Co'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.
General Motors Co (NYSE:GM) 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
General Motors Co had a gross margin of 7.70% 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.
General Motors Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of General Motors Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
General Motors Co (General Motors Co) Business Description
General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under four segments: GM North America, GM International, Cruise, and GM Financial. The United States now has four brands instead of eight under old GM. The company regained its U.S. market share leader crown in 2022, after losing it to Toyota due to the chip shortage in 2021, with share up 170 basis points to 16.4%, a full percentage point ahead of Toyota. GM's Cruise autonomous vehicle arm has previously done driverless geofenced AV robotaxi services in San Francisco and other cities but stopped in late 2023 after an accident. GM owns over 80% of Cruise. GM Financial became the company's captive finance arm in October 2010 via the purchase of AmeriCredit.
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