John Keells Holdings PLC gross margin has been in long-term decline. The average rate of decline per year is -6.3%.
The historical rank and industry rank for John Keells Holdings's Gross Margin % or its related term are showing as below:
LUX:JOHNK'
s Gross Margin % Range Over the Past 10 Years
Min: 14.83 Med: 22.34 Max: 30.58
Current: 18.93
During the past 13 years, the highestGross Margin % of John Keells Holdings was 30.58%. The lowest was 14.83%. And the median was 22.34%.
LUX:JOHNK's Gross Margin % is ranked worse than 66.39% of 479
companies
in the Conglomerates industry
Industry Median: 25.03
vs LUX:JOHNK: 18.93
John Keells Holdings had a gross margin of 20.67% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for John Keells Holdings was -6.30% per year.
John Keells Holdings Gross Margin % Historical Data
The historical data trend for John Keells 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.
Competitive Comparison of John Keells Holdings's Gross Margin %
For the Conglomerates subindustry, John Keells 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.
John Keells Holdings's Gross Margin % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, John Keells Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where John Keells Holdings'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.
John Keells Holdings (LUX:JOHNK) 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
John Keells Holdings had a gross margin of 20.67% 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.
John Keells Holdings Gross Margin % Related Terms
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John Keells Holdings (LUX:JOHNK) Business Description
John Keells Holdings PLC is a Sri Lankan company. It has a diversified business, which includes food and beverage, transportation, tea and rubber plantations, tour operations, retail and financial services, and others. The company segments include Transportation, Consumer Foods, Retail, Leisure, Property, Financial Services, and Others. The retail segment focuses on organized retailing through a chain of supermarkets and distribution of printers, copiers, smartphones, and other office automation equipment. It generates maximum revenue from the Retail segment. Geographically, it derives a majority of revenue from Sri Lanka and also has a presence in Asia, Europe, and Others Countries.
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