The historical rank and industry rank for Procter & Gamble Co's Gross Margin % or its related term are showing as below:
PG'
s Gross Margin % Range Over the Past 10 Years
Min: 47.43 Med: 49.12 Max: 51.41
Current: 51.41
During the past 13 years, the highestGross Margin % of Procter & Gamble Co was 51.41%. The lowest was 47.43%. And the median was 49.12%.
PG's Gross Margin % is ranked better than 86.06% of 1844
companies
in the Consumer Packaged Goods industry
Industry Median: 25.29
vs PG: 51.41
Procter & Gamble Co had a gross margin of 52.06% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Procter & Gamble Co was 0.10% per year.
Procter & Gamble Co Gross Margin % Historical Data
The historical data trend for Procter & Gamble Co'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 Procter & Gamble Co's Gross Margin %
For the Household & Personal Products subindustry, Procter & Gamble Co'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.
Procter & Gamble Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Procter & Gamble Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Procter & Gamble Co'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.
Procter & Gamble Co (NYSE:PG) 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
Procter & Gamble Co had a gross margin of 52.06% for the quarter that ended in Sep. 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.
Procter & Gamble Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Procter & Gamble Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Since its founding in 1837, Procter & Gamble has become one of the world's largest consumer product manufacturers, generating more than $80 billion in annual sales. It operates with a lineup of leading brands, including more than 20 that generate north of $1 billion each in annual global sales, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. Sales outside its home turf represent more than half of the firm's consolidated total.
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