African Agriculture Holdings (African Agriculture Holdings) Gross Margin % : 25.05% (As of Sep. 2023)

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What is African Agriculture Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. African Agriculture Holdings's Gross Profit for the three months ended in Sep. 2023 was $0.12 Mil. African Agriculture Holdings's Revenue for the three months ended in Sep. 2023 was $0.48 Mil. Therefore, African Agriculture Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 25.05%.

The historical rank and industry rank for African Agriculture Holdings's Gross Margin % or its related term are showing as below:

AAGR' s Gross Margin % Range Over the Past 10 Years
Min: -15.46 Med: 4.9 Max: 28.95
Current: 28.95

During the past 3 years, the highest Gross Margin % of African Agriculture Holdings was 28.95%. The lowest was -15.46%. And the median was 4.90%.

AAGR's Gross Margin % is ranked better than
59.32% of 1807 companies
in the Consumer Packaged Goods industry
Industry Median: 25.08 vs AAGR: 28.95

African Agriculture Holdings had a gross margin of 25.05% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for African Agriculture Holdings was 0.00% per year.

African Agriculture Holdings Gross Margin % Historical Data

The historical data trend for African Agriculture Holdings'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.

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African Agriculture Holdings Gross Margin % Chart

African Agriculture Holdings Annual Data

Trend

Dec21

Dec22

Dec23

Gross Margin %

-15.46

25.26

African Agriculture Holdings Quarterly Data
	Dec21	Mar22	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial			-	33.25	29.11	25.05	-

Competitive Comparison of African Agriculture Holdings's Gross Margin %

For the Farm Products subindustry, African Agriculture Holdings'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.

African Agriculture Holdings's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, African Agriculture Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where African Agriculture Holdings's Gross Margin % falls into.

African Agriculture Holdings Gross Margin % Calculation

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

African Agriculture Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	0.5	/	1.817
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.817 - 1.358)	/	1.817
	=	25.26 %

African Agriculture Holdings'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 )
	=	0.1	/	0.483
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.483 - 0.362)	/	0.483
	=	25.05 %

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.

African Agriculture Holdings (NAS:AAGR) 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

African Agriculture Holdings had a gross margin of 25.05% 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.

African Agriculture Holdings Gross Margin % Related Terms

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African Agriculture Holdings (African Agriculture Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » African Agriculture Holdings Inc (NAS:AAGR) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

445 Park Avenue, Ninth Floor, New York, NY, USA, 10022

Website

African Agriculture Holdings Inc is a holding company that operates principally through its wholly-owned subsidiary, which is developing the company's initial commercial farming business based in northern Senegal focusing on the production and sale of alfalfa for cattle feed and nutrition purposes. The company will sell alfalfa to owners and suppliers of cattle for feed and nutritional purposes, primarily in Senegal and the surrounding regions in Africa, the Economic Community of West African States (ECOWAS) region and the Middle East.