Gross Margin % is calculated as gross profit divided by its revenue. Cabot's Gross Profit for the
three
months ended in Dec. 2023 was $218 Mil. Cabot's Revenue for the
three
months ended in Dec. 2023 was $958 Mil. Therefore, Cabot's Gross Margin % for the quarter that ended in Dec. 2023 was 22.76%.
The historical rank and industry rank for Cabot's Gross Margin % or its related term are showing as below:
CBT'
s Gross Margin % Range Over the Past 10 Years
Min: 19.13 Med: 20.94 Max: 24.18
Current: 22.32
During the past 13 years, the highestGross Margin % of Cabot was 24.18%. The lowest was 19.13%. And the median was 20.94%.
CBT's Gross Margin % is ranked better than 50.07% of 1510
companies
in the Chemicals industry
Industry Median: 22.315
vs CBT: 22.32
Cabot had a gross margin of 22.76% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Cabot was -1.00% per year.
Cabot Gross Margin % Historical Data
The historical data trend for Cabot'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.
For the Specialty Chemicals subindustry, Cabot'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.
Cabot's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cabot's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cabot'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.
Cabot (NYSE:CBT) 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
Cabot had a gross margin of 22.76% 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.
Cabot Gross Margin % Related Terms
Thank you for viewing the detailed overview of Cabot's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cabot Corp manufactures and sells a variety of chemicals, materials, and chemical-based products. The company organizes itself into two segments based on the product type. The reinforcement materials segment, which generates more revenue than any other segment, sells rubber-grade carbon black products used in hoses and belts in automobiles. The performance chemicals segment sells ink-jet colorants and metal oxides used in the automotive and construction industries.
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