Brookfield Business Exchangeable Subordinate Voting Shares(Bbuc) Financials: Gross Profit Margin Compared To Industry Average, Plus Other Key Ratios
Company Report for BBUC
Report - gross profit margin
This chart shows the historical trend of gross profit margin for BBUC compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Gross Profit Margin
Definition: Gross profit margin shows how much profit the company keeps from each dollar of sales after covering the direct cost of making its products or delivering services. High margins suggest strong pricing power or efficient production. Shrinking margins might mean rising costs or tougher competition eating into profits.
Interpretation:
• In '2021', BBUC's gross profit margin was 6.2%, showing profitability after production and operational costs. Industry average for Engineering & Construction in '2021' stood at 19.4%.
• In '2022', BBUC's gross profit margin was 9.4%, showing profitability after production and operational costs. The increase since '2021' reflects strengthening financial performance. Industry average for Engineering & Construction in '2022' stood at 19.0%. Industry average declined by 0.4% from previous year.
• In '2023', BBUC's gross profit margin was 11.6%, showing profitability after production and operational costs. The increase since '2022' reflects strengthening financial performance. Industry average for Engineering & Construction in '2023' stood at 19.2%. Industry average increased by 0.2% compared to previous year.
• In '2024', BBUC's gross profit margin was 7.8%, showing profitability after production and operational costs. The decline from '2023' may indicate some operational or financial challenges. Industry average for Engineering & Construction in '2024' stood at 18.7%. Industry average declined by 0.5% from previous year.
Overall, BBUC's gross profit margin has been volatile but generally stable over the past 4 years.
Formula: Gross Profit Margin = (Revenue - COGS) / Revenue
Good Range: Often 20%-60% depending on industry.