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Bezeq The Israeli Telecommunication (Bezeq The Israeli Telecommunication) Gross Margin % : 81.94% (As of Dec. 2023)


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What is Bezeq The Israeli Telecommunication Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Bezeq The Israeli Telecommunication's Gross Profit for the three months ended in Dec. 2023 was $492 Mil. Bezeq The Israeli Telecommunication's Revenue for the three months ended in Dec. 2023 was $600 Mil. Therefore, Bezeq The Israeli Telecommunication's Gross Margin % for the quarter that ended in Dec. 2023 was 81.94%.


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

BZQIY' s Gross Margin % Range Over the Past 10 Years
Min: 80.4   Med: 82.67   Max: 83.58
Current: 82.57


During the past 13 years, the highest Gross Margin % of Bezeq The Israeli Telecommunication was 83.58%. The lowest was 80.40%. And the median was 82.67%.

BZQIY's Gross Margin % is ranked better than
91.74% of 351 companies
in the Telecommunication Services industry
Industry Median: 49.08 vs BZQIY: 82.57

Bezeq The Israeli Telecommunication had a gross margin of 81.94% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Bezeq The Israeli Telecommunication was -0.10% per year.


Bezeq The Israeli Telecommunication Gross Margin % Historical Data

The historical data trend for Bezeq The Israeli Telecommunication'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.

Bezeq The Israeli Telecommunication Gross Margin % Chart

Bezeq The Israeli Telecommunication 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 82.50 82.45 82.77 83.03 82.57

Bezeq The Israeli Telecommunication 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 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 82.40 81.67 83.56 83.09 81.94

Competitive Comparison of Bezeq The Israeli Telecommunication's Gross Margin %

For the Telecom Services subindustry, Bezeq The Israeli Telecommunication'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.


Bezeq The Israeli Telecommunication's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Bezeq The Israeli Telecommunication's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Bezeq The Israeli Telecommunication's Gross Margin % falls into.



Bezeq The Israeli Telecommunication Gross Margin % Calculation

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

Bezeq The Israeli Telecommunication'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 )
=2022 / 2448.997
=(Revenue - Cost of Goods Sold) / Revenue
=(2448.997 - 426.954) / 2448.997
=82.57 %

Bezeq The Israeli Telecommunication'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 )
=491.8 / 600.21
=(Revenue - Cost of Goods Sold) / Revenue
=(600.21 - 108.42) / 600.21
=81.94 %

* 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.


Bezeq The Israeli Telecommunication  (OTCPK:BZQIY) 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

Bezeq The Israeli Telecommunication had a gross margin of 81.94% 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.


Bezeq The Israeli Telecommunication Gross Margin % Related Terms

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Bezeq The Israeli Telecommunication (Bezeq The Israeli Telecommunication) Business Description

Traded in Other Exchanges
Address
132 Menachem Begin Avenue, Azrieli Center, (Triangle Tower), 27th Floor, Tel Aviv, ISR, 61620
Bezeq The Israeli Telecommunication Corp Ltd is a triple-play telecommunications company. The company generates revenue through the provision of mobile, broadband, and data. It operates through four business segments: Bezeq, Pelephone, Bezeq International, and DBS Satellite Services. The Bezeq segment generates revenue from fixed-line communications and contributes the majority of overall company revenue. Pelephone derives revenue from the provision of mobile services. Bezeq International and DBS Satellite Services produce revenue from the provision of Internet services and satellite TV services, respectively. The company owns telecommunications infrastructure, such as fibre networks. It generates the vast majority of its revenue in Israel.