Valson Industries Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.9%.
The historical rank and industry rank for Valson Industries's Gross Margin % or its related term are showing as below:
BOM:530459'
s Gross Margin % Range Over the Past 10 Years
Min: 17.11 Med: 22.74 Max: 27.29
Current: 19.24
During the past 13 years, the highestGross Margin % of Valson Industries was 27.29%. The lowest was 17.11%. And the median was 22.74%.
BOM:530459's Gross Margin % is ranked worse than 61.59% of 1031
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.71
vs BOM:530459: 19.24
Valson Industries had a gross margin of 28.48% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Valson Industries was -7.90% per year.
Valson Industries Gross Margin % Historical Data
The historical data trend for Valson Industries'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 Valson Industries's Gross Margin %
For the Textile Manufacturing subindustry, Valson Industries'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.
Valson Industries's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Valson Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Valson Industries'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.
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
Valson Industries had a gross margin of 28.48% for the quarter that ended in Dec. 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.
Valson Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of Valson Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Valson Industries (BOM:530459) Business Description
Valson Industries Ltd is an Indian company engaged in the business of Polyester Dyed Yarn and processors of Cotton and other fancy yarn. The company is a manufacturer, exporter of Polyester Texturized, Twisted, Nylon, Spun, Fancy, Cellulosic Dyed yarns and processors (Dyer) of polyester, viscose,. The principal business activities of the company are Manufacture of synthetic or artificial filament yarn, tenacity yarn whether or not textured including high tenacity yarn. The single business segment is Yarn. The majority of the revenue is from domestic sales of texturized, twisted, Dyed & Fancy Yarn. Its products are used in a range of applications, including shirting, suiting's, label, upholstery, hosiery, furnishings, automotive, and ready-made garments industries.
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