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Companhia Deneamento Basico Do Estado Deo Paulo (Companhia Deneamento Basico Do Estado Deo Paulo) Gross Margin % : 38.88% (As of Sep. 2023)


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What is Companhia Deneamento Basico Do Estado Deo Paulo Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Companhia Deneamento Basico Do Estado Deo Paulo's Gross Profit for the three months ended in Sep. 2023 was $508 Mil. Companhia Deneamento Basico Do Estado Deo Paulo's Revenue for the three months ended in Sep. 2023 was $1,307 Mil. Therefore, Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin % for the quarter that ended in Sep. 2023 was 38.88%.

Warning Sign:

Companhia De Saneamento Basico Do Estado De Sao Paulo gross margin has been in long-term decline. The average rate of decline per year is -4.3%.


The historical rank and industry rank for Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin % or its related term are showing as below:

SBS' s Gross Margin % Range Over the Past 10 Years
Min: 29.46   Med: 36.63   Max: 43.63
Current: 35.05


During the past 13 years, the highest Gross Margin % of Companhia Deneamento Basico Do Estado Deo Paulo was 43.63%. The lowest was 29.46%. And the median was 36.63%.

SBS's Gross Margin % is ranked better than
61.43% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs SBS: 35.05

Companhia Deneamento Basico Do Estado Deo Paulo had a gross margin of 38.88% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Companhia Deneamento Basico Do Estado Deo Paulo was -4.30% per year.


Companhia Deneamento Basico Do Estado Deo Paulo Gross Margin % Historical Data

The historical data trend for Companhia Deneamento Basico Do Estado Deo Paulo'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.

Companhia Deneamento Basico Do Estado Deo Paulo Gross Margin % Chart

Companhia Deneamento Basico Do Estado Deo Paulo Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.51 43.63 37.18 34.33 34.93

Companhia Deneamento Basico Do Estado Deo Paulo Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 37.08 33.67 35.88 31.58 38.88

Competitive Comparison of Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin %

For the Utilities - Regulated Water subindustry, Companhia Deneamento Basico Do Estado Deo Paulo'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.


Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin % falls into.



Companhia Deneamento Basico Do Estado Deo Paulo Gross Margin % Calculation

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

Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=1468.9 / 4204.774
=(Revenue - Cost of Goods Sold) / Revenue
=(4204.774 - 2735.903) / 4204.774
=34.93 %

Companhia Deneamento Basico Do Estado Deo Paulo's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=508 / 1306.669
=(Revenue - Cost of Goods Sold) / Revenue
=(1306.669 - 798.696) / 1306.669
=38.88 %

* 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.


Companhia Deneamento Basico Do Estado Deo Paulo  (NYSE:SBS) 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

Companhia Deneamento Basico Do Estado Deo Paulo had a gross margin of 38.88% for the quarter that ended in Sep. 2023 => Competition eroding margins


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.


Companhia Deneamento Basico Do Estado Deo Paulo Gross Margin % Related Terms

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Companhia Deneamento Basico Do Estado Deo Paulo (Companhia Deneamento Basico Do Estado Deo Paulo) Business Description

Traded in Other Exchanges
Address
Rua Costa Carvalho, 300, Sao Paulo, SP, BRA, 05429-900
Companhia De Saneamento Basico Do Estado De Sao Paulo is Brazilian water and waste management company. SABESP is one of the largest waste management companies in the world, and the state of Sao Paulo is the company's majority stakeholder. The company generates revenue through exclusive long-term agreements with municipal governments. It is not uncommon for SABESP to serve the vast majority of the market. The company operates in a single segment, which is Sanitation services.

Companhia Deneamento Basico Do Estado Deo Paulo (Companhia Deneamento Basico Do Estado Deo Paulo) Headlines