Gross Margin % is calculated as gross profit divided by its revenue. Tenneco's Gross Profit for the
three
months ended in Sep. 2022 was $543 Mil. Tenneco's Revenue for the
three
months ended in Sep. 2022 was $4,931 Mil. Therefore, Tenneco's Gross Margin % for the quarter that ended in Sep. 2022 was 11.01%.
Warning Sign:
Tenneco Inc gross margin has been in long-term decline. The average rate of decline per year is -5.7%.
The historical rank and industry rank for Tenneco's Gross Margin % or its related term are showing as below:
TEN'
s Gross Margin % Range Over the Past 10 Years
Min: 11.36 Med: 15.82 Max: 17.11
Current: 11.36
During the past 13 years, the highestGross Margin % of Tenneco was 17.11%. The lowest was 11.36%. And the median was 15.82%.
TEN's Gross Margin % is not ranked
in the Vehicles & Parts industry.
Industry Median: 19.525
vs TEN: 11.36
Tenneco had a gross margin of 11.01% for the quarter that ended in Sep. 2022 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tenneco was -5.70% per year.
Tenneco Gross Margin % Historical Data
The historical data trend for Tenneco'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.
Competitive Comparison of Tenneco's Gross Margin %
For the Auto Parts subindustry, Tenneco'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.
Tenneco's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Tenneco's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tenneco's Gross Margin % falls into.
* 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.
Tenneco (NYSE:TEN) 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
Tenneco had a gross margin of 11.01% for the quarter that ended in Sep. 2022 => 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.
Tenneco Gross Margin % Related Terms
Thank you for viewing the detailed overview of Tenneco's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tenneco's emissions-control products meet strict air-quality legislation, optimize engine performance, improve fuel economy, and acoustically tune engine sound to fit a vehicle's profile. Ride-control products enhance safety by enabling improved steering, braking, and acceleration as well as ride comfort. Champion, Fel-Pro, Moog, Monroe, and Walker are some of Tenneco's well-known aftermarket brands. In 2021, 40% of revenue came from North America, 36% from Europe, 18% from China, and 6% other regions.
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