Gross Margin % is calculated as gross profit divided by its revenue. LQR House's Gross Profit for the
three
months ended in Dec. 2023 was $0.10 Mil. LQR House's Revenue for the
three
months ended in Dec. 2023 was $0.61 Mil. Therefore, LQR House's Gross Margin % for the quarter that ended in Dec. 2023 was 15.60%.
The historical rank and industry rank for LQR House's Gross Margin % or its related term are showing as below:
LQR'
s Gross Margin % Range Over the Past 10 Years
Min: -114.92 Med: -33.61 Max: 18.36
Current: 18.36
During the past 3 years, the highestGross Margin % of LQR House was 18.36%. The lowest was -114.92%. And the median was -33.61%.
LQR's Gross Margin % is ranked worse than 88.1% of 210
companies
in the Beverages - Alcoholic industry
Industry Median: 39.73
vs LQR: 18.36
LQR House had a gross margin of 15.60% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for LQR House was 0.00% per year.
LQR House Gross Margin % Historical Data
The historical data trend for LQR House'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 LQR House's Gross Margin %
For the Beverages - Wineries & Distilleries subindustry, LQR House'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.
LQR House's Gross Margin % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, LQR House's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LQR House'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.
LQR House (NAS:LQR) 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
LQR House had a gross margin of 15.60% for the quarter that ended in Dec. 2023 => No sustainable 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.
LQR House Gross Margin % Related Terms
Thank you for viewing the detailed overview of LQR House's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
LQR House Inc intends to become the full-service digital marketing and brand development face of the alcoholic beverage space. It also intends to integrate the supply, sales, and marketing facets of the alcoholic beverage space into one easy-to-use platform and become the one-stop shop for everything related to alcohol. The company's primary business includes the development of premium limited-batch spirit brands, establishing an exclusive wine club, and marketing internal and external brands through an exclusive agreement with a U.S.-based e-commerce portal. It believes that the marketing and brand management services it provides to its wholly owned and third-party clients will increase brand recognition thereof, and drive sales thereof through its e-commerce platform partner.
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