Gross Margin % is calculated as gross profit divided by its revenue. Vestis's Gross Profit for the
three
months ended in Mar. 2024 was $201 Mil. Vestis's Revenue for the
three
months ended in Mar. 2024 was $705 Mil. Therefore, Vestis's Gross Margin % for the quarter that ended in Mar. 2024 was 28.49%.
The historical rank and industry rank for Vestis's Gross Margin % or its related term are showing as below:
VSTS'
s Gross Margin % Range Over the Past 10 Years
Min: 28.13 Med: 29.07 Max: 30.44
Current: 30.44
During the past 4 years, the highestGross Margin % of Vestis was 30.44%. The lowest was 28.13%. And the median was 29.07%.
VSTS's Gross Margin % is ranked worse than 54.91% of 987
companies
in the Business Services industry
Industry Median: 34.43
vs VSTS: 30.44
Vestis had a gross margin of 28.49% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Vestis was 0.00% per year.
Vestis Gross Margin % Historical Data
The historical data trend for Vestis'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 Rental & Leasing Services subindustry, Vestis'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.
Vestis's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Vestis's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vestis'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.
Vestis (NYSE:VSTS) 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
Vestis had a gross margin of 28.49% for the quarter that ended in Mar. 2024 => 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.
Vestis Gross Margin % Related Terms
Thank you for viewing the detailed overview of Vestis's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Vestis Corp is a provider of uniform rentals and workplace supplies across the United States and Canada. It provides uniforms, mats, towels, linens, restroom supplies, first-aid supplies, safety products, and other workplace supplies. The Company serves customers ranging from small, family-owned operations with a single location to large corporations and national franchises with multiple locations. The company operates in the United States and Canada as reportable segments. The company earns the majority of its revenue from the United States.
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