What does gross margin mean?

How much of every sales dollar is left after the direct cost of what was sold.

How do you interpret gross margin?

Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.

How does gross margin compare across companies?

Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.

American Tower AMT Gross margin

Discontinued — last reported Q1 '20

Gross margin at other companies

SBA CommunicationsSBAC

93%-2.0pp

Crown CastleCCI

97.3%-0.3pp

Equinix, Inc.EQIX

51.1%+1.6pp

MTZ

MasTecMTZ

12.8%-0.3pp

WelltowerWELL

39.8%+0.6pp

Advanced Energy IndustriesAEIS

38.2%+1.8pp

Other financials

Income statement

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Revenue$2.7B+6.8%

Operating income$1.2B-1.2%

Net income$878.5M+76.2%

EPS (diluted)$1.84+76.9%

Balance sheet

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Cash & equivalents$1.6B-23.5%

Total debt$13.9B+34.7%

Total equity$3.5B-0.3%

Total assets$63.2B+1.9%

Cash flow

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Operating cash flow$1.4B+8.2%

CapEx$449.5M+35.8%

Free cash flow$951.1M-1.3%

Valuation

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Market cap$82.02B-20.9%

Enterprise value$94.36B-15.6%

P/E27.3×-28.6×

P/S7.6×-2.6×

Profitability

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Operating margin44.7%-0.8pp

Net margin27.8%+9.6pp

Returns & leverage

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Return on equity85.3%+36.3pp

Debt / equity4×+1.0×

Current ratio0.3×-0.3×

Where this comes from

Calculated from American Tower’s reported figures.

gross profit/total revenue=99.5%

Based on trailing twelve months.

The official record: American Tower’s 10-Q, filed April 29, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does gross margin mean?: How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?: Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?: Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.