TIM (TIMB) Gross Margin %

: 53.12% (As of Sep. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. TIM's Gross Profit for the three months ended in Sep. 2023 was $651 Mil. TIM's Revenue for the three months ended in Sep. 2023 was $1,226 Mil. Therefore, TIM's Gross Margin % for the quarter that ended in Sep. 2023 was 53.12%.

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

TIMB' s Gross Margin % Range Over the Past 10 Years
Min: 45.68 Med: 51.13 Max: 57.22
Current: 51.76

During the past 13 years, the highest Gross Margin % of TIM was 57.22%. The lowest was 45.68%. And the median was 51.13%.

TIMB's Gross Margin % is ranked better than
52.82% of 354 companies
in the Telecommunication Services industry
Industry Median: 48.98 vs TIMB: 51.76

TIM had a gross margin of 53.12% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for TIM was -0.50% per year.

TIM Gross Margin % Historical Data

The historical data trend for TIM'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.

TIM Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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57.22

53.69

53.25

50.51

51.76

TIM 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															50.73	50.15	49.98	53.12	53.57

Competitive Comparison

For the Telecom Services subindustry, TIM'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.

TIM Gross Margin % Distribution

For the Telecommunication Services industry and Communication Services sector, TIM's Gross Margin % distribution charts can be found below:

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

TIM Gross Margin % Calculation

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

TIM's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	2073.2	/	4104.701
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4104.701 - 2031.49)	/	4104.701
	=	50.51 %

TIM's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	651.3	/	1226.096
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1226.096 - 574.814)	/	1226.096
	=	53.12 %

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.

TIM (NYSE:TIMB) 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

TIM had a gross margin of 53.12% for the quarter that ended in Sep. 2023 => Durable 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.

TIM Gross Margin % Related Terms

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TIM (TIMB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » TIM SA (NYSE:TIMB) » Definitions » Gross Margin %

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Traded in Other Exchanges

TIMS3:Brazil

Address

Avenida Joao Cabral de Melo Neto, 850, Torre Norte, 12th Floor, Room 1212, Barra da Tijuca, Rio de Janeiro, RJ, BRA, 22775-057

Website

https://ri.tim.com.br

TIM, which is 67%-owned by Telecom Italia, is the third largest wireless carrier in Brazil, with 61 million subscribers, equal to about 24% of the market. The firm also owns 49% of I-Systems, an infrastructure partnership that is expanding its network footprint across Brazil. I-Systems can provide broadband service to about 9 million locations, equal to a bit less than 15% of the country. TIM leases capacity on the venture's network to serve retail broadband customers under the UltraFibra brand.