Aboitiz Power (PHS:AP) Gross Margin % : 28.35% (As of Dec. 2023)

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What is Aboitiz Power Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Aboitiz Power's Gross Profit for the three months ended in Dec. 2023 was ₱14,871 Mil. Aboitiz Power's Revenue for the three months ended in Dec. 2023 was ₱52,461 Mil. Therefore, Aboitiz Power's Gross Margin % for the quarter that ended in Dec. 2023 was 28.35%.

Warning Sign:

Aboitiz Power Corp gross margin has been in long-term decline. The average rate of decline per year is -8.2%.

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

PHS:AP' s Gross Margin % Range Over the Past 10 Years
Min: 26.54 Med: 38.69 Max: 43.36
Current: 27.88

During the past 13 years, the highest Gross Margin % of Aboitiz Power was 43.36%. The lowest was 26.54%. And the median was 38.69%.

PHS:AP's Gross Margin % is ranked worse than
51.3% of 501 companies
in the Utilities - Regulated industry
Industry Median: 29.23 vs PHS:AP: 27.88

Aboitiz Power had a gross margin of 28.35% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Aboitiz Power was -8.20% per year.

Aboitiz Power Gross Margin % Historical Data

The historical data trend for Aboitiz Power'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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Aboitiz Power Gross Margin % Chart

Aboitiz Power Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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37.09

41.89

36.19

26.54

27.88

Aboitiz Power 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															18.86	24.28	29.07	29.55	28.35

Competitive Comparison of Aboitiz Power's Gross Margin %

For the Utilities - Regulated Electric subindustry, Aboitiz Power'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.

Aboitiz Power's Gross Margin % Distribution in the Utilities - Regulated Industry

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

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

Aboitiz Power Gross Margin % Calculation

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

Aboitiz Power'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 )
	=	57729.2	/	207099.897
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(207099.897 - 149370.742)	/	207099.897
	=	27.88 %

Aboitiz Power'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 )
	=	14871.1	/	52460.762
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(52460.762 - 37589.669)	/	52460.762
	=	28.35 %

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.

Aboitiz Power (PHS:AP) 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

Aboitiz Power had a gross margin of 28.35% 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.

Aboitiz Power Gross Margin % Related Terms

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Aboitiz Power (PHS:AP) Business Description

Industry

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ABZPF:USA

Address

NAC Tower, 32nd Street, Bonifacio Global City, Metro Manila, Taguig, PHL, 1634

Website

https://www.aboitizpower.com

Aboitiz Power Corp is an electric utility company operating in the Philippines of which Aboitiz Equity Ventures is the majority shareholder. Through its subsidiaries, Aboitiz Power generates and distributes electricity. The company controls a portfolio of geothermal, hydroelectric, solar, wind, oil-fired, and coal-fired power plants. most of Aboitiz Power's energy production comes from its non-renewable facilities. The company's sites, meanwhile, are mainly hydroelectric. The vast majority of Aboitiz Power's income is derived from its power generation business, while a sizable portion also comes from its distribution segment. Almost all sales are made through bilateral contracts with private utilities, the country's state-owned power provider, and industrial and commercial customers.