GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » American Electric Power Co Inc (NAS:AEP) » Definitions » Gross Margin %

AEP (American Electric Power Co) Gross Margin % : 62.44% (As of Jun. 2024)


View and export this data going back to 1949. Start your Free Trial

What is American Electric Power Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. American Electric Power Co's Gross Profit for the three months ended in Jun. 2024 was $2,859 Mil. American Electric Power Co's Revenue for the three months ended in Jun. 2024 was $4,579 Mil. Therefore, American Electric Power Co's Gross Margin % for the quarter that ended in Jun. 2024 was 62.44%.


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

AEP' s Gross Margin % Range Over the Past 10 Years
Min: 53.07   Med: 57.82   Max: 63.94
Current: 60.67


During the past 13 years, the highest Gross Margin % of American Electric Power Co was 63.94%. The lowest was 53.07%. And the median was 57.82%.

AEP's Gross Margin % is ranked better than
89.18% of 490 companies
in the Utilities - Regulated industry
Industry Median: 29.835 vs AEP: 60.67

American Electric Power Co had a gross margin of 62.44% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for American Electric Power Co was 0.10% per year.


American Electric Power Co Gross Margin % Historical Data

The historical data trend for American Electric Power Co'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.

American Electric Power Co Gross Margin % Chart

American Electric Power Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 59.39 63.94 60.77 57.50 58.62

American Electric Power Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 59.64 61.02 56.65 62.33 62.44

Competitive Comparison of American Electric Power Co's Gross Margin %

For the Utilities - Regulated Electric subindustry, American Electric Power Co'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.


American Electric Power Co's Gross Margin % Distribution in the Utilities - Regulated Industry

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

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



American Electric Power Co Gross Margin % Calculation

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

American Electric Power Co'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 )
=11127.7 / 18982.3
=(Revenue - Cost of Goods Sold) / Revenue
=(18982.3 - 7854.6) / 18982.3
=58.62 %

American Electric Power Co's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=2859.2 / 4579.2
=(Revenue - Cost of Goods Sold) / Revenue
=(4579.2 - 1720) / 4579.2
=62.44 %

* 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.


American Electric Power Co  (NAS:AEP) 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

American Electric Power Co had a gross margin of 62.44% for the quarter that ended in Jun. 2024 => 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.


American Electric Power Co Gross Margin % Related Terms

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


American Electric Power Co Business Description

Address
1 Riverside Plaza, Columbus, OH, USA, 43215-2373
American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states. About 42% of AEP's of capacity is coal, with the remainder from a mix of natural gas (27%), renewable energy and hydro (21%), nuclear (8%), and demand response (2%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.
Executives
Antonio P Smyth officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Greg B Hall officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Daniel G. Stoddard director 5000 DOMINION BOULEVARD, GLEN ALLEN VA 23060
Kate Sturgess officer: Controller, CAO 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
David Matthew Feinberg officer: Senior Vice President C/O ALLEGHENY ENERGY, INC., 800 CABIN HILL DRIVE, GREENSBURG PA 15601
Christian T Beam officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Nicholas K Akins officer: Executive Vice President AMERICAN ELECTRIC POWER COMPANY, INC., 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Ann P Kelly officer: Executive Vice President & CFO 460 NORTH GULPH ROAD, KING OF PRUSSIA PA 19406
Peggy Simmons officer: Executive Vice President 212 E 6TH ST, TULSA OK 74119
Raja Sundararajan officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Donna James director ONE MIRANOVA PLACE, SUITE 1040, COLUMBUS OH 43215
Therace Risch officer: Senior Vice President 6501 LEGACY DRIVE, PLANO TX 75024
Charles E Zebula officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Paul Iii Chodak officer: Executive Vice President 1 RIVERSIDE PLAZA, COLUMBUS OH 43215
Julia A Sloat officer: Executive VP, CFO 1 RIVERSIDE PLAZA, COLUMBUS OH 43215