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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:
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%.
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.
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.
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 | 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 | 59.64 | 61.02 | 56.65 | 62.33 | 62.44 |
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.
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.
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.
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.
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 |
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