GURUFOCUS.COM » STOCK LIST » Industrials » Construction » AECOM (LTS:0H9N) » Definitions » Gross Margin %

AECOM (LTS:0H9N) Gross Margin % : 6.62% (As of Mar. 2024)


View and export this data going back to 2018. Start your Free Trial

What is AECOM Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. AECOM's Gross Profit for the three months ended in Mar. 2024 was $261 Mil. AECOM's Revenue for the three months ended in Mar. 2024 was $3,944 Mil. Therefore, AECOM's Gross Margin % for the quarter that ended in Mar. 2024 was 6.62%.


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

LTS:0H9N' s Gross Margin % Range Over the Past 10 Years
Min: 2.97   Med: 4.65   Max: 6.58
Current: 6.56


During the past 13 years, the highest Gross Margin % of AECOM was 6.58%. The lowest was 2.97%. And the median was 4.65%.

LTS:0H9N's Gross Margin % is ranked worse than
86.17% of 1612 companies
in the Construction industry
Industry Median: 19.255 vs LTS:0H9N: 6.56

AECOM had a gross margin of 6.62% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for AECOM was 13.50% per year.


AECOM Gross Margin % Historical Data

The historical data trend for AECOM'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.

AECOM Gross Margin % Chart

AECOM Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.48 5.36 5.98 6.45 6.58

AECOM Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 6.54 6.83 6.57 6.26 6.62

Competitive Comparison of AECOM's Gross Margin %

For the Engineering & Construction subindustry, AECOM'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.


AECOM's Gross Margin % Distribution in the Construction Industry

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

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



AECOM Gross Margin % Calculation

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

AECOM's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=945.5 / 14378.461
=(Revenue - Cost of Goods Sold) / Revenue
=(14378.461 - 13432.996) / 14378.461
=6.58 %

AECOM's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=261.2 / 3943.833
=(Revenue - Cost of Goods Sold) / Revenue
=(3943.833 - 3682.659) / 3943.833
=6.62 %

* 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.


AECOM  (LTS:0H9N) 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

AECOM had a gross margin of 6.62% for the quarter that ended in Mar. 2024 => 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.


AECOM Gross Margin % Related Terms

Thank you for viewing the detailed overview of AECOM's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


AECOM (LTS:0H9N) Business Description

Traded in Other Exchanges
Address
13355 Noel Road, Suite 400, Dallas, TX, USA, 75240
Aecom is one of the largest global providers of design, engineering, construction, and management services. It serves a broad spectrum of end markets including infrastructure, water, transportation, and energy. Based in Los Angeles, Aecom has a presence in over 150 countries and employs 51,000. The company generated $14.4 billion in sales and $847 million in adjusted operating income in fiscal 2023.

AECOM (LTS:0H9N) Headlines

No Headlines