Suncor Energy (TSX:SU) Gross Margin % : 26.68% (As of Dec. 2023)

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What is Suncor Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Suncor Energy's Gross Profit for the three months ended in Dec. 2023 was C$3,626 Mil. Suncor Energy's Revenue for the three months ended in Dec. 2023 was C$13,589 Mil. Therefore, Suncor Energy's Gross Margin % for the quarter that ended in Dec. 2023 was 26.68%.

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

TSX:SU' s Gross Margin % Range Over the Past 10 Years
Min: 20.37 Med: 39.67 Max: 45.23
Current: 42.58

During the past 13 years, the highest Gross Margin % of Suncor Energy was 45.23%. The lowest was 20.37%. And the median was 39.67%.

TSX:SU's Gross Margin % is ranked better than
67.14% of 925 companies
in the Oil & Gas industry
Industry Median: 27.87 vs TSX:SU: 42.58

Suncor Energy had a gross margin of 26.68% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Suncor Energy was 2.60% per year.

Suncor Energy Gross Margin % Historical Data

The historical data trend for Suncor Energy'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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Suncor Energy Gross Margin % Chart

Suncor Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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35.97

20.37

42.69

42.72

42.00

Suncor Energy 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															40.02	51.57	49.19	44.60	26.68

Competitive Comparison of Suncor Energy's Gross Margin %

For the Oil & Gas Integrated subindustry, Suncor Energy'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.

Suncor Energy's Gross Margin % Distribution in the Oil & Gas Industry

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

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

Suncor Energy Gross Margin % Calculation

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

Suncor Energy'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 )
	=	21924	/	52206
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(52206 - 30282)	/	52206
	=	42.00 %

Suncor Energy'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 )
	=	3626	/	13589
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(13589 - 9963)	/	13589
	=	26.68 %

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.

Suncor Energy (TSX:SU) 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

Suncor Energy had a gross margin of 26.68% 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.

Suncor Energy Gross Margin % Related Terms

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Suncor Energy (TSX:SU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Suncor Energy Inc (TSX:SU) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SU:USA SUU:Mexico SM3:Germany SM3:Germany

Address

150 - 6th Avenue S.W., P.O. Box 2844, Calgary, AB, CAN, T2P 3E3

Website

https://www.suncor.com

Suncor Energy Inc is an integrated energy company. The company's operations include oil sands development, production and upgrading, offshore oil and gas, petroleum refining in Canada and the U.S. and the company's Petro-Canada retail and wholesale distribution networks. The company is developing petroleum resources while advancing the transition to a low-emissions future through investment in power, renewable fuels and hydrogen. It also conducts energy trading activities focused principally on the marketing and trading of crude oil, natural gas, byproducts, refined products and power.