Gross Margin % is calculated as gross profit divided by its revenue. Andritz AG's Gross Profit for the
three
months ended in Mar. 2024 was $1,054 Mil. Andritz AG's Revenue for the
three
months ended in Mar. 2024 was $2,050 Mil. Therefore, Andritz AG's Gross Margin % for the quarter that ended in Mar. 2024 was 51.40%.
Warning Sign:
Andritz AG gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Andritz AG's Gross Margin % or its related term are showing as below:
ADRZF'
s Gross Margin % Range Over the Past 10 Years
Min: 45.39 Med: 48.23 Max: 50.44
Current: 46.38
During the past 13 years, the highestGross Margin % of Andritz AG was 50.44%. The lowest was 45.39%. And the median was 48.23%.
ADRZF's Gross Margin % is ranked better than 93.75% of 144
companies
in the Industrial Distribution industry
Industry Median: 22.97
vs ADRZF: 46.38
Andritz AG had a gross margin of 51.40% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Andritz AG was -1.50% per year.
Andritz AG Gross Margin % Historical Data
The historical data trend for Andritz AG'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.
Competitive Comparison of Andritz AG's Gross Margin %
For the Industrial Distribution subindustry, Andritz AG'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.
Andritz AG's Gross Margin % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Andritz AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Andritz AG's Gross Margin % falls into.
* 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.
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.
Andritz AG (OTCPK:ADRZF) 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
Andritz AG had a gross margin of 51.40% for the quarter that ended in Mar. 2024 => Durable competitive advantage
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.
Andritz AG Gross Margin % Related Terms
Thank you for viewing the detailed overview of Andritz AG's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Andritz AG is a producer of high-technology industrial machinery and operates through four operating segments: ANDRITZ Pulp & Paper provides sustainable technology, automation, and service solutions for the production of all types of pulp, paper, board, and tissue, ANDRITZ Metals includes suppliers of technologies, plants, and digital solutions in metal forming, and also includes automation and software solutions, process know-how, and service, ANDRITZ Hydro includes suppliers of electromechanical equipment and services for hydropower plants, and ANDRITZ Separation provides mechanical and thermal technologies as well as services and the related automation solutions for solid/liquid separation, serving the chemical, environmental, food, and the mining and minerals industries.
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