Alarko Holding AS (IST:ALARK) Gross Margin % : -1.51% (As of Dec. 2023)

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What is Alarko Holding AS Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Alarko Holding AS's Gross Profit for the three months ended in Dec. 2023 was ₺-34 Mil. Alarko Holding AS's Revenue for the three months ended in Dec. 2023 was ₺2,224 Mil. Therefore, Alarko Holding AS's Gross Margin % for the quarter that ended in Dec. 2023 was -1.51%.

Warning Sign:

Alarko Holding AS gross margin has been in long-term decline. The average rate of decline per year is -21.4%.

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

IST:ALARK' s Gross Margin % Range Over the Past 10 Years
Min: 1.5 Med: 10.91 Max: 37.8
Current: 8.3

During the past 13 years, the highest Gross Margin % of Alarko Holding AS was 37.80%. The lowest was 1.50%. And the median was 10.91%.

IST:ALARK's Gross Margin % is ranked worse than
90% of 480 companies
in the Conglomerates industry
Industry Median: 25.035 vs IST:ALARK: 8.30

Alarko Holding AS had a gross margin of -1.51% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Alarko Holding AS was -21.40% per year.

Alarko Holding AS Gross Margin % Historical Data

The historical data trend for Alarko Holding AS'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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Alarko Holding AS Gross Margin % Chart

Alarko Holding AS Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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26.84

37.80

1.50

13.53

8.29

Alarko Holding AS 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															9.72	17.75	5.40	13.14	-1.51

Competitive Comparison of Alarko Holding AS's Gross Margin %

For the Conglomerates subindustry, Alarko Holding AS'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.

Alarko Holding AS's Gross Margin % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Alarko Holding AS's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Alarko Holding AS's Gross Margin % falls into.

Alarko Holding AS Gross Margin % Calculation

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

Alarko Holding AS'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 )
	=	688.1	/	8296.228
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(8296.228 - 7608.085)	/	8296.228
	=	8.29 %

Alarko Holding AS'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 )
	=	-33.7	/	2223.664
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2223.664 - 2257.337)	/	2223.664
	=	-1.51 %

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.

Alarko Holding AS (IST:ALARK) 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

Alarko Holding AS had a gross margin of -1.51% for the quarter that ended in Dec. 2023 => No sustainable 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.

Alarko Holding AS Gross Margin % Related Terms

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Alarko Holding AS (IST:ALARK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Alarko Holding AS (IST:ALARK) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Muallim Naci Caddesi No. 69, Ortakoy, Istanbul, TUR, 34347

Website

https://www.alarko.com.tr

Alarko Holding AS is a holding company consisting of companies that operate in contracting, construction, land development, industry, trade, tourism, and energy. The company's segments include holding, tourism, industry and merchandising, energy, contracting/land development. Its contracting group operates as a general contractor in Turkey and abroad and carries out airport and rail system projects, large scale infrastructure works, constructions of industrial plants, hospitals, and other such projects. The majority of the revenue is derived from the contracting and land development segment.

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