Arcadium Lithium (Arcadium Lithium) Gross Margin % : 55.11% (As of Sep. 2023)

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What is Arcadium Lithium Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Arcadium Lithium's Gross Profit for the three months ended in Sep. 2023 was $116.5 Mil. Arcadium Lithium's Revenue for the three months ended in Sep. 2023 was $211.4 Mil. Therefore, Arcadium Lithium's Gross Margin % for the quarter that ended in Sep. 2023 was 55.11%.

Warning Sign:

Arcadium Lithium PLC gross margin has been in long-term decline. The average rate of decline per year is -7%.

The historical rank and industry rank for Arcadium Lithium's Gross Margin % or its related term are showing as below:

ALTM' s Gross Margin % Range Over the Past 10 Years
Min: 12.77 Med: 33.43 Max: 58.67
Current: 58.67

During the past 7 years, the highest Gross Margin % of Arcadium Lithium was 58.67%. The lowest was 12.77%. And the median was 33.43%.

ALTM's Gross Margin % is ranked better than
95.56% of 1509 companies
in the Chemicals industry
Industry Median: 22.25 vs ALTM: 58.67

Arcadium Lithium had a gross margin of 55.11% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Arcadium Lithium was -7.00% per year.

Arcadium Lithium Gross Margin % Historical Data

The historical data trend for Arcadium Lithium'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.

* Premium members only.

Arcadium Lithium Gross Margin % Chart

Arcadium Lithium Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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46.62

29.58

12.77

21.03

48.66

Arcadium Lithium Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															51.55	51.91	65.48	60.81	55.11

Competitive Comparison of Arcadium Lithium's Gross Margin %

For the Specialty Chemicals subindustry, Arcadium Lithium'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.

Arcadium Lithium's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Arcadium Lithium's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Arcadium Lithium's Gross Margin % falls into.

Arcadium Lithium Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Arcadium Lithium's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	395.7	/	813.2
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(813.2 - 417.5)	/	813.2
	=	48.66 %

Arcadium Lithium's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	116.5	/	211.4
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(211.4 - 94.9)	/	211.4
	=	55.11 %

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.

Arcadium Lithium (NYSE:ALTM) 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

Arcadium Lithium had a gross margin of 55.11% for the quarter that ended in Sep. 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.

Arcadium Lithium Gross Margin % Related Terms

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Arcadium Lithium (Arcadium Lithium) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Arcadium Lithium PLC (NYSE:ALTM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ARLTF:USA 7WO:Germany 7WO:Germany 7WO:Germany 7WO0:Germany LTM:Australia

Address

1818 Market Street, Philadelphia, PA, USA, 19103

Website

https://www.livent.com

Arcadium Lithium is a pure-play lithium producer that was formed in the Allkem-Livent merger in January 2024. Arcadium should benefit from increased lithium demand via higher electric vehicle adoption, as lithium is a key component of EV batteries. The company's low-cost lithium carbonate production comes from two brine resources in Argentina. Arcadium also produces spodumene, a hard rock lithium upstream concentrate, from a mine in Australia and operates downstream lithium hydroxide conversion plants in the United States and China.

Executives

Gilberto Antoniazzi	officer: Vice President and CFO	LIVENT CORPORATION, C/O FMC CORPORATION, 2929 WALNUT STREET, PHILADELPHIA PA 19104
Paul W Graves	director, officer: President and CEO	1735 MARKET STREET, PHILADELPHIA PA 19103
Christina Lampe-onnerud	director	C/O FUELCELL ENERGY, INC., 3 GREAT PASTURE ROAD, DANBURY CT 06810
Pablo Marcet	director	C/O GEO LOGIC SA, PASCUAL, FICHERA Y, ASOC., CERRITO 1070, PISO 8, BUENOS AIRES C1 1010
Ronald B Stark	officer: Chief Accounting Officer	C/O NRG ENERGY, INC., 211 CARNEGIE CENTER, PRINCETON NJ 08540
Nicholas Pfeiffer	officer: Chief Accounting Officer	1735 MARKET STREET, PHILADELPHIA PA 19103
G Peter Daloia	director
Steven T Merkt	director	1050 WESTLAKES DRIVE, BERWYN PA 19312
Michael F Barry	director	ONE QUAKER PARK, 901 HECTOR ST, CONSHOHOCHEN PA 19428
Pierre R Brondeau	director	ROHAM AND HAAS CO, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106
Robert C Pallash	director	17000 ROTUNDA DRIVE, DEARBORN MI 48120
Andrea E Utecht	director	1735 MARKET ST, 15TH FL, PHILADELPHIA PA 19103
Fmc Corp	10 percent owner	2929 WALNUT STREET, PHILADELPHIA PA 19104
Sara Ponessa	officer: VP, Gen. Counsel & Secretary	C/O LIVENT CORP., 1818 MARKET STREET, PHILADELPHIA PA 19103
Thomas Schneberger	officer: Vice President and COO	C/O FMC CORP, 2929 WALNUT STREET, PHILADELPHIA PA 19104