Ventia Services Group (ASX:VNT) Gross Margin % : 92.43% (As of Dec. 2023)

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What is Ventia Services Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ventia Services Group's Gross Profit for the six months ended in Dec. 2023 was A$2,671 Mil. Ventia Services Group's Revenue for the six months ended in Dec. 2023 was A$2,890 Mil. Therefore, Ventia Services Group's Gross Margin % for the quarter that ended in Dec. 2023 was 92.43%.

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

ASX:VNT' s Gross Margin % Range Over the Past 10 Years
Min: 92.22 Med: 92.51 Max: 92.89
Current: 92.51

During the past 3 years, the highest Gross Margin % of Ventia Services Group was 92.89%. The lowest was 92.22%. And the median was 92.51%.

ASX:VNT's Gross Margin % is ranked better than
98.88% of 1613 companies
in the Construction industry
Industry Median: 19.23 vs ASX:VNT: 92.51

Ventia Services Group had a gross margin of 92.43% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ventia Services Group was 0.00% per year.

Ventia Services Group Gross Margin % Historical Data

The historical data trend for Ventia Services Group'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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Ventia Services Group Gross Margin % Chart

Ventia Services Group Annual Data

Trend

Dec21

Dec22

Dec23

Gross Margin %

92.22

92.89

92.51

Ventia Services Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	-	93.36	92.45	92.59	92.43

Competitive Comparison of Ventia Services Group's Gross Margin %

For the Infrastructure Operations subindustry, Ventia Services Group'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.

Ventia Services Group's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ventia Services Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ventia Services Group's Gross Margin % falls into.

Ventia Services Group Gross Margin % Calculation

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

Ventia Services Group'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 )
	=	5251.1	/	5676.4
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5676.4 - 425.3)	/	5676.4
	=	92.51 %

Ventia Services Group'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 )
	=	2670.9	/	2889.6
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2889.6 - 218.7)	/	2889.6
	=	92.43 %

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.

Ventia Services Group (ASX:VNT) 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

Ventia Services Group had a gross margin of 92.43% 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.

Ventia Services Group Gross Margin % Related Terms

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Ventia Services Group (ASX:VNT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ventia Services Group Ltd (ASX:VNT) » Definitions » Gross Margin %

Traded in Other Exchanges

VNT:New Zealand

Address

80 Pacific Highway, Level 8, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.ventia.com

While Ventia is not the largest player with an estimated 7.5% share of addressable markets, it is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.