Horizon Oil (ASX:HZN) Gross Margin % : 46.46% (As of Dec. 2023)

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What is Horizon Oil Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Horizon Oil's Gross Profit for the six months ended in Dec. 2023 was A$46.5 Mil. Horizon Oil's Revenue for the six months ended in Dec. 2023 was A$100.0 Mil. Therefore, Horizon Oil's Gross Margin % for the quarter that ended in Dec. 2023 was 46.46%.

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

ASX:HZN' s Gross Margin % Range Over the Past 10 Years
Min: -6.6 Med: 46.47 Max: 74.31
Current: 47.32

During the past 13 years, the highest Gross Margin % of Horizon Oil was 74.31%. The lowest was -6.60%. And the median was 46.47%.

ASX:HZN's Gross Margin % is ranked better than
73.06% of 928 companies
in the Oil & Gas industry
Industry Median: 27.905 vs ASX:HZN: 47.32

Horizon Oil had a gross margin of 46.46% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Horizon Oil was 0.30% per year.

Horizon Oil Gross Margin % Historical Data

The historical data trend for Horizon Oil'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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Horizon Oil Gross Margin % Chart

Horizon Oil Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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46.86

28.77

32.80

49.05

46.08

Horizon Oil Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															46.63	50.36	44.10	48.10	46.46

Competitive Comparison of Horizon Oil's Gross Margin %

For the Oil & Gas E&P subindustry, Horizon Oil'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.

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

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

* The bar in red indicates where Horizon Oil's Gross Margin % falls into.

Horizon Oil Gross Margin % Calculation

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

Horizon Oil's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	103.4	/	224.342
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(224.342 - 120.955)	/	224.342
	=	46.08 %

Horizon Oil'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 )
	=	46.5	/	100.013
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(100.013 - 53.545)	/	100.013
	=	46.46 %

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.

Horizon Oil (ASX:HZN) 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

Horizon Oil had a gross margin of 46.46% for the quarter that ended in Dec. 2023 => 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.

Horizon Oil Gross Margin % Related Terms

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Horizon Oil (ASX:HZN) Business Description

Industry

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HZNFF:USA

Address

360 Kent Street, Level 4, Sydney, NSW, AUS, 2000

Website

https://horizonoil.com.au

Horizon Oil Ltd is engaged in petroleum exploration, development, and production. The company's exploration, development, and production activities are focused on Southeast Asia. The operating segments of the group are New Zealand exploration and development, China exploration and development, and All other segments. It generates the prime revenue from New Zealand's exploration and development segment in which the group is involved in the development and production of crude oil and oil field development and in the exploration and evaluation of hydrocarbons. The operations of the organization are carried out in China and New Zealand.