Meikles (LSE:MIK) Gross Margin % : 24.87% (As of Aug. 2023)

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What is Meikles Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Meikles's Gross Profit for the six months ended in Aug. 2023 was $672 Mil. Meikles's Revenue for the six months ended in Aug. 2023 was $2,701 Mil. Therefore, Meikles's Gross Margin % for the quarter that ended in Aug. 2023 was 24.87%.

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

LSE:MIK' s Gross Margin % Range Over the Past 10 Years
Min: 20.04 Med: 21.76 Max: 29.31
Current: 24.44

During the past 7 years, the highest Gross Margin % of Meikles was 29.31%. The lowest was 20.04%. And the median was 21.76%.

LSE:MIK's Gross Margin % is ranked worse than
72.69% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.46 vs LSE:MIK: 24.44

Meikles had a gross margin of 24.87% for the quarter that ended in Aug. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Meikles was 2.60% per year.

Meikles Gross Margin % Historical Data

The historical data trend for Meikles'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.

* Premium members only.

Meikles Gross Margin % Chart

Meikles Annual Data

Trend

Dec08

Dec09

Mar11

Mar12

Mar19

Mar20

Mar21

Gross Margin %

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22.49

20.75

29.31

21.02

23.25

Meikles Semi-Annual Data
	Dec09	Mar11	Mar12	Sep12	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Aug23
Gross Margin %	Get a 7-Day Free Trial									-	27.22	23.41	21.51	24.87

Competitive Comparison of Meikles's Gross Margin %

For the Department Stores subindustry, Meikles'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.

Meikles's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Meikles's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Meikles's Gross Margin % falls into.

Meikles Gross Margin % Calculation

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

Meikles's Gross Margin for the fiscal year that ended in Mar. 2021 is calculated as

Gross Margin % (A: Mar. 2021 )	=	Gross Profit (A: Mar. 2021 )	/	Revenue (A: Mar. 2021 )
	=	35.5	/	152.504
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(152.504 - 117.046)	/	152.504
	=	23.25 %

Meikles's Gross Margin for the quarter that ended in Aug. 2023 is calculated as

Gross Margin % (Q: Aug. 2023 )	=	Gross Profit (Q: Aug. 2023 )	/	Revenue (Q: Aug. 2023 )
	=	671.9	/	2701.372
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2701.372 - 2029.515)	/	2701.372
	=	24.87 %

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.

Meikles (LSE:MIK) 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

Meikles had a gross margin of 24.87% for the quarter that ended in Aug. 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.

Meikles Gross Margin % Related Terms

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Meikles (LSE:MIK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Meikles Ltd (LSE:MIK) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MEIK.ZW:Zimbabwe

Address

4 Steppes Road, Highlands, Harare, ZWE

Website

https://www.meiklesltd.com

Meikles Ltd is a Zimbabwe-based investment holding company. Its business segments include Supermarkets, Hotels, properties, and security guard operations. It is organized into two geographical segments, Zimbabwe, and non-Zimbabwe. The majority of its revenue is generated from the Supermarkets segment within Zimbabwe.