Rolls-Royce Holdings PLC
LSE:RR

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Rolls-Royce Holdings PLC
LSE:RR
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Price: 753.6 GBX -2.28%
Market Cap: 64.1B GBX

Gross Margin
Rolls-Royce Holdings PLC

22.3%
Current
21%
Average
30.8%
Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
22.3%
=
Gross Profit
4.2B
/
Revenue
18.9B

Gross Margin Across Competitors

Country Company Market Cap Gross
Margin
UK
Rolls-Royce Holdings PLC
LSE:RR
64.1B GBP
22%
US
RTX Corp
LSE:0R2N
177.5B USD
19%
US
Raytheon Technologies Corp
NYSE:RTX
175.5B USD
19%
NL
Airbus SE
PAR:AIR
128.7B EUR
15%
US
Boeing Co
NYSE:BA
129.8B USD
-3%
FR
Safran SA
PAR:SAF
102.4B EUR
48%
US
Lockheed Martin Corp
NYSE:LMT
104.2B USD
10%
US
TransDigm Group Inc
NYSE:TDG
77.2B USD
61%
US
Northrop Grumman Corp
NYSE:NOC
74.2B USD
20%
US
General Dynamics Corp
NYSE:GD
72.7B USD
15%
DE
Rheinmetall AG
XETRA:RHM
56.9B EUR
52%

Rolls-Royce Holdings PLC
Glance View

Economic Moat
None
Market Cap
64.1B GBX
Industry
Aerospace & Defense

Rolls-Royce Holdings PLC is a testament to British innovation, crafting a legacy that transcends the brand's storied history rooted in luxury automobiles. Originally founded in 1904, the company has since evolved, pivoting its core business towards the engineering and manufacturing of power systems. Today, Rolls-Royce Holdings PLC operates as a multinational public company with a strategy centered on producing engines for aerospace, marine, and industrial applications. This transition highlights a meticulous expansion beyond their renowned motorcars into becoming an integral player in the global aerospace market. Making strides as a leader in sophisticated engineering, the company focuses on designing and ongoing servicing of power systems that are both efficient and sustainable. Through this, Rolls-Royce generates revenue, primarily from the sale of its advanced turbine engines and the long-term service contracts associated with them. The company's financial heartbeat stems from creating some of the most advanced technology in the aviation sector. Rolls-Royce's Trent engine series, used in commercial airline fleets worldwide, showcases its prowess in innovation and precision engineering. These engines are fundamental to their revenue model, as they are not only sold to prestigious airlines but also supported through extensive service contracts that ensure long-term engagement and recurrent income. These contracts account for a significant portion of Rolls-Royce's revenue, as regular maintenance, repairs, and updates are not just necessary but essential to keeping the airplanes operating seamlessly and efficiently. Furthermore, Rolls-Royce's commitment to research and development underpins its competitive edge, allowing it to offer cutting-edge solutions like hybrid-electric propulsion systems, aligning its tradition of technological excellence with the movement towards greener aviation.

RR Intrinsic Value
480.99 GBX
Overvaluation 36%
Intrinsic Value
Price
What is Gross Margin?

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin
22.3%
=
Gross Profit
4.2B
/
Revenue
18.9B
What is the Gross Margin of Rolls-Royce Holdings PLC?

Based on Rolls-Royce Holdings PLC's most recent financial statements, the company has Gross Margin of 22.3%.

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