Gross Margin % is calculated as gross profit divided by its revenue. MSAfety's Gross Profit for the
three
months ended in Dec. 2023 was $238 Mil. MSAfety's Revenue for the
three
months ended in Dec. 2023 was $495 Mil. Therefore, MSAfety's Gross Margin % for the quarter that ended in Dec. 2023 was 48.08%.
The historical rank and industry rank for MSAfety's Gross Margin % or its related term are showing as below:
MSA'
s Gross Margin % Range Over the Past 10 Years
Min: 43.95 Med: 45.04 Max: 47.67
Current: 47.67
During the past 13 years, the highestGross Margin % of MSAfety was 47.67%. The lowest was 43.95%. And the median was 45.04%.
MSA's Gross Margin % is ranked better than 66.87% of 993
companies
in the Business Services industry
Industry Median: 34.65
vs MSA: 47.67
MSAfety had a gross margin of 48.08% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for MSAfety was 0.50% per year.
MSAfety Gross Margin % Historical Data
The historical data trend for MSAfety'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 MSAfety's Gross Margin %
For the Security & Protection Services subindustry, MSAfety'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.
MSAfety's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, MSAfety's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MSAfety'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.
MSAfety (NYSE:MSA) 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
MSAfety had a gross margin of 48.08% for the quarter that ended in Dec. 2023 => 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.
MSAfety Gross Margin % Related Terms
Thank you for viewing the detailed overview of MSAfety's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
MSA Safety Inc makes safety products that are used to protect workers in the oil and gas and mining industries. The products include breathing apparatuses, fall protection, portable gas detection systems, industrial head protection, fire and rescue helmets, and fixed gas and flame detection systems. End markets include the fire service, contractor, industrial, mining, oil and gas, and utilities industries. MSA Safety generates most of its revenue in North America. The company's reportable geographic segments are Americas, International and Corporate.
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