Brookfield Business (TSX:BBUC) Gross Margin % : 16.27% (As of Dec. 2023)

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What is Brookfield Business Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Brookfield Business's Gross Profit for the three months ended in Dec. 2023 was C$-241 Mil. Brookfield Business's Revenue for the three months ended in Dec. 2023 was C$-1,484 Mil. Therefore, Brookfield Business's Gross Margin % for the quarter that ended in Dec. 2023 was 16.27%.

Warning Sign:

Brookfield Business Corp gross margin has been in long-term decline. The average rate of decline per year is -18.3%.

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

TSX:BBUC' s Gross Margin % Range Over the Past 10 Years
Min: 6.15 Med: 14.44 Max: 33.28
Current: 23.61

During the past 6 years, the highest Gross Margin % of Brookfield Business was 33.28%. The lowest was 6.15%. And the median was 14.44%.

TSX:BBUC's Gross Margin % is ranked worse than
71.19% of 531 companies
in the Asset Management industry
Industry Median: 51.29 vs TSX:BBUC: 23.61

Brookfield Business had a gross margin of 16.27% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Brookfield Business was -18.30% per year.

Brookfield Business Gross Margin % Historical Data

The historical data trend for Brookfield Business'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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Brookfield Business Gross Margin % Chart

Brookfield Business Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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28.78

33.28

6.15

9.41

11.57

Brookfield Business Quarterly Data
	Dec18	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial											14.16	43.92	11.94	11.88	16.27

Competitive Comparison of Brookfield Business's Gross Margin %

For the Asset Management subindustry, Brookfield Business'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.

Brookfield Business's Gross Margin % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Brookfield Business's Gross Margin % distribution charts can be found below:

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

Brookfield Business Gross Margin % Calculation

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

Brookfield Business'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 )
	=	1192.7	/	10307.513
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10307.513 - 9114.831)	/	10307.513
	=	11.57 %

Brookfield Business'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 )
	=	-241.5	/	-1483.81
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(-1483.81 - -1242.322)	/	-1483.81
	=	16.27 %

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.

Brookfield Business (TSX:BBUC) 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

Brookfield Business had a gross margin of 16.27% 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.

Brookfield Business Gross Margin % Related Terms

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Brookfield Business (TSX:BBUC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Brookfield Business Corp (TSX:BBUC) » Definitions » Gross Margin %

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Traded in Other Exchanges

BBUC:USA

Address

1055 West Georgia Street, Suite 1500, P.O. Box 11117, Vancouver, BC, CAN, V6E 4N7

Website

https://www.bbu.brookfield.com

Brookfield Business Corp is a company established as a vehicle that owns and operates certain services and industrial operations on a global basis and an alternative vehicle for investors who prefer investing in its operations through a corporate structure. Its goal is to generate returns through long-term capital appreciation with a modest distribution yield.