RIVN Profit Margins
Gross, Operating & Net Margin Analysis for Rivian Automotive Inc
Margin Quality
Weak
Current Profit Margins
Gross Margin
2.7%
$144.00M gross profit
Operating Margin
-66.5%
$-3585000000.00 operating income
Net Profit Margin
-67.7%
$-3646000000.00 net income
5-Year Margin Trends
What Margins Indicate About RIVN
Business Quality
Lower gross margins may reflect commodity-like products or intense price competition in the Consumer Discretionary.
Operational Efficiency
Declining operating margins may indicate rising costs, competitive pressures, or investments in growth.
Profitability
Negative net margins indicate the company is currently unprofitable and burning cash.
Investment Implications
Expanding margins across the board suggest improving business fundamentals, which often supports stock price appreciation.
Understanding Profit Margins
Gross Margin
(Revenue - Cost of Goods Sold) / Revenue. Measures pricing power and production efficiency before operating expenses.
Operating Margin
Operating Income / Revenue. Shows profitability from core operations after all operating expenses but before interest and taxes.
Net Profit Margin
Net Income / Revenue. The bottom line - shows how much profit the company keeps from each dollar of revenue after all expenses.
Analyze RIVN Profitability
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Frequently Asked Questions
What is RIVN's profit margin?
RIVN (Rivian Automotive Inc) has a net profit margin of -67.7%, meaning the company keeps $-0.6768145535548542 in profit for every dollar of revenue. This represents an improvement from the previous year's net margin of -95.5%.
What is RIVN's gross margin?
RIVN's gross margin is 2.7%. Gross margin measures the percentage of revenue remaining after subtracting the cost of goods sold. A lower gross margin like this reflects the competitive dynamics of the Consumer Discretionary.
What is RIVN's operating margin?
RIVN has an operating margin of -66.5%. Operating margin shows profitability after operating expenses but before interest and taxes. This metric helps investors understand how efficiently Rivian Automotive Inc manages its operations.
Are RIVN's profit margins good?
RIVN's margins are considered weak. When evaluating margins, it's important to compare against Automobiles peers, as different sectors have structurally different margin profiles.
How do profit margins affect RIVN stock?
Profit margins are a key indicator of RIVN's business quality and competitive position. The current margins should be evaluated alongside growth rates and return on capital to assess overall business quality. Expanding margins often lead to stock price appreciation, while contracting margins can signal competitive pressures.
What drives RIVN's profit margins?
RIVN's profit margins are influenced by several factors: pricing power vs competitors, operational efficiency, scale advantages, input costs (materials, labor), Automobiles-specific dynamics, and management execution. The significant expansion in gross margin suggests changes in these underlying drivers.
Disclaimer: Margin analysis is based on reported financial statements and should be compared to industry peers for context. Different sectors have structurally different margin profiles. This information is for educational purposes only and should not be considered financial advice.