Gross Margin % is calculated as gross profit divided by its revenue. Dnow's Gross Profit for the
three
months ended in Dec. 2023 was $130 Mil. Dnow's Revenue for the
three
months ended in Dec. 2023 was $555 Mil. Therefore, Dnow's Gross Margin % for the quarter that ended in Dec. 2023 was 23.42%.
The historical rank and industry rank for Dnow's Gross Margin % or its related term are showing as below:
DNOW'
s Gross Margin % Range Over the Past 10 Years
Min: 16.37 Med: 19.91 Max: 23.69
Current: 23.05
During the past 12 years, the highestGross Margin % of Dnow was 23.69%. The lowest was 16.37%. And the median was 19.91%.
DNOW's Gross Margin % is ranked worse than 60.16% of 2937
companies
in the Industrial Products industry
Industry Median: 26.42
vs DNOW: 23.05
Dnow had a gross margin of 23.42% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Dnow was 4.10% per year.
Dnow Gross Margin % Historical Data
The historical data trend for Dnow'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 Industrial Machinery subindustry, Dnow'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.
Dnow's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Dnow's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dnow'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.
Dnow (NYSE:DNOW) 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
Dnow had a gross margin of 23.42% 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.
Dnow Gross Margin % Related Terms
Thank you for viewing the detailed overview of Dnow's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Dnow Inc is a company engaged in worldwide supplying of energy and industrial products and packaged, engineered process and production equipment with a legacy of over one sixty years. They offer a broad set of supply chain solutions combined with a suite of digital solutions branded as DigitalNOW that provide customers world-class technology for digital commerce, data and information management. Its locations provide products and solutions to exploration and production companies, midstream transmission and storage companies, refineries, chemical companies, utilities, mining, municipal water, manufacturers, engineering and construction companies as well as companies operating in the decarbonization, energy transition and renewables end markets.
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