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Solaris Oilfield Infrastructure (Solaris Oilfield Infrastructure) Gross Margin % : 26.77% (As of Dec. 2023)


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What is Solaris Oilfield Infrastructure Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Solaris Oilfield Infrastructure's Gross Profit for the three months ended in Dec. 2023 was $17.0 Mil. Solaris Oilfield Infrastructure's Revenue for the three months ended in Dec. 2023 was $63.3 Mil. Therefore, Solaris Oilfield Infrastructure's Gross Margin % for the quarter that ended in Dec. 2023 was 26.77%.

Warning Sign:

Solaris Oilfield Infrastructure Inc gross margin has been in long-term decline. The average rate of decline per year is -17.1%.


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

SOI' s Gross Margin % Range Over the Past 10 Years
Min: 9.9   Med: 35.35   Max: 65.1
Current: 26.94


During the past 9 years, the highest Gross Margin % of Solaris Oilfield Infrastructure was 65.10%. The lowest was 9.90%. And the median was 35.35%.

SOI's Gross Margin % is ranked worse than
51.46% of 925 companies
in the Oil & Gas industry
Industry Median: 27.87 vs SOI: 26.94

Solaris Oilfield Infrastructure had a gross margin of 26.77% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Solaris Oilfield Infrastructure was -17.10% per year.


Solaris Oilfield Infrastructure Gross Margin % Historical Data

The historical data trend for Solaris Oilfield Infrastructure'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.

Solaris Oilfield Infrastructure Gross Margin % Chart

Solaris Oilfield Infrastructure Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 52.59 9.90 10.38 21.81 26.94

Solaris Oilfield Infrastructure Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.25 25.49 29.12 26.40 26.77

Competitive Comparison of Solaris Oilfield Infrastructure's Gross Margin %

For the Oil & Gas Equipment & Services subindustry, Solaris Oilfield Infrastructure'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.


Solaris Oilfield Infrastructure's Gross Margin % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Solaris Oilfield Infrastructure's Gross Margin % falls into.



Solaris Oilfield Infrastructure Gross Margin % Calculation

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

Solaris Oilfield Infrastructure'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 )
=78.9 / 292.947
=(Revenue - Cost of Goods Sold) / Revenue
=(292.947 - 214.032) / 292.947
=26.94 %

Solaris Oilfield Infrastructure'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 )
=17 / 63.347
=(Revenue - Cost of Goods Sold) / Revenue
=(63.347 - 46.388) / 63.347
=26.77 %

* 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.


Solaris Oilfield Infrastructure  (NYSE:SOI) 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

Solaris Oilfield Infrastructure had a gross margin of 26.77% 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.


Solaris Oilfield Infrastructure Gross Margin % Related Terms

Thank you for viewing the detailed overview of Solaris Oilfield Infrastructure's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Solaris Oilfield Infrastructure (Solaris Oilfield Infrastructure) Business Description

Traded in Other Exchanges
Address
9811 Katy Freeway, Suite 700, Houston, TX, USA, 77024
Solaris Oilfield Infrastructure Inc provides oilfield products, services and infrastructure to enhance drilling, completions, efficiency and safety in North American shale plays. The company manufactures and provides its patented mobile proppant management systems that unload, store and deliver proppant at oil and natural gas well sites. Its systems reduce the customers' cost and time to complete wells by improving the efficiency of proppant logistics, in addition to enhancing well site safety. Its customers include oil and natural gas exploration and production companies as well as oilfield service companies. The company generates revenue primarily through the rental of its systems and related services, including transportation of systems and field supervision and support.
Executives
Thrc Holdings, Lp 10 percent owner 17018 INTERSTATE 20, CISCO TX 76437
James R Burke director
Cynthia M. Durrett officer: Chief Administrative Officer 9811 KATY FREEWAY, SUITE 900, HOUSTON TX 77024
Christopher P. Wirtz officer: CHIEF ACCOUNTING OFFICER 9811 KATY FREEWAY, SUITE 700, HOUSTON TX 77024
William A Zartler director 600 TRAVIS STREET, SUITE 2310, HOUSTON TX 77002
Lindsay R. Bourg officer: Chief Accounting Officer 1415 LOUISIANA STREET, SUITE 1600, HOUSTON TX 77002
Kelly L. Price officer: Chief Operating Officer 9811 KATY FREEWAY, SUITE 900, HOUSTON TX 77024
Kyle S. Ramachandran officer: Chief Financial Officer 9811 KATY FREEWAY, SUITE 900, HOUSTON TX 77024
Christopher M Powell officer: General Counsel 9811 KATY FREEWAY, STE. 700, HOUSTON TX 77024
Laurie H Argo director 1100 LOUISIANA STREET, SUITE 1000, HOUSTON TX 77002
Thrc Management, Llc 10 percent owner 17018 INTERSTATE 20, CISCO TX 76437
Dan H. Wilks 10 percent owner 17018 INTERSTATE 20, CISCO TX 76437
Staci Wilks 10 percent owner 17018 INTERSTATE 20, CISCO TX 76437
Keenan W Howard Jr director 410 PARK AVENUE, 20TH FLOOR, NEW YORK NY 10022
Solaris Energy Capital, Llc 10 percent owner 9811 KATY FREEWAY, SUITE 900, HOUSTON TX 77024

Solaris Oilfield Infrastructure (Solaris Oilfield Infrastructure) Headlines