Lassonde Industries Inc gross margin has been in long-term decline. The average rate of decline per year is -1.7%.
The historical rank and industry rank for Lassonde Industries's Gross Margin % or its related term are showing as below:
TSX:LAS.A'
s Gross Margin % Range Over the Past 10 Years
Min: 24.33 Med: 27.75 Max: 28.95
Current: 25.39
During the past 13 years, the highestGross Margin % of Lassonde Industries was 28.95%. The lowest was 24.33%. And the median was 27.75%.
TSX:LAS.A's Gross Margin % is ranked worse than 81.48% of 108
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 36.875
vs TSX:LAS.A: 25.39
Lassonde Industries had a gross margin of 25.22% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lassonde Industries was -1.70% per year.
Lassonde Industries Gross Margin % Historical Data
The historical data trend for Lassonde 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 Lassonde Industries's Gross Margin %
For the Beverages - Non-Alcoholic subindustry, Lassonde 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.
Lassonde Industries's Gross Margin % Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Lassonde Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lassonde 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
Lassonde Industries had a gross margin of 25.22% 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.
Lassonde Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lassonde Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lassonde Industries (TSX:LAS.A) Business Description
Lassonde Industries Inc is engaged in the development, manufacturing, and marketing of ready-to-drink fruit and vegetable juices and drinks. It also acts as a producer of store-brand shelf-stable fruit juices and drinks in the United States and a producer of cranberry sauces. The company operates through a single segment the development, manufacturing, and marketing of a wide range of ready-to-drink juices and drinks; frozen juice concentrates; and specialty food products; and the importation, packaging, and marketing of selected wines from several countries of origin. Lassonde has a presence in Canada and the United States. It earns the majority of the revenue in the United States.
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