Gross Margin % is calculated as gross profit divided by its revenue. AdvanSix's Gross Profit for the
three
months ended in Mar. 2024 was $3 Mil. AdvanSix's Revenue for the
three
months ended in Mar. 2024 was $337 Mil. Therefore, AdvanSix's Gross Margin % for the quarter that ended in Mar. 2024 was 0.88%.
The historical rank and industry rank for AdvanSix's Gross Margin % or its related term are showing as below:
ASIX'
s Gross Margin % Range Over the Past 10 Years
Min: 6.64 Med: 11.4 Max: 16.27
Current: 6.64
During the past 11 years, the highestGross Margin % of AdvanSix was 16.27%. The lowest was 6.64%. And the median was 11.40%.
ASIX's Gross Margin % is ranked worse than 80.91% of 1509
companies
in the Chemicals industry
Industry Median: 22.2
vs ASIX: 6.64
AdvanSix had a gross margin of 0.88% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AdvanSix was 3.80% per year.
AdvanSix Gross Margin % Historical Data
The historical data trend for AdvanSix'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 AdvanSix's Gross Margin %
For the Chemicals subindustry, AdvanSix'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.
AdvanSix's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, AdvanSix's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AdvanSix'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.
AdvanSix (NYSE:ASIX) 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
AdvanSix had a gross margin of 0.88% for the quarter that ended in Mar. 2024 => No sustainable 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.
AdvanSix Gross Margin % Related Terms
Thank you for viewing the detailed overview of AdvanSix's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
AdvanSix Inc. is an integrated manufacturer of Nylon 6, a polymer resin and fertilizers. Nylon 6 is a synthetic material used by customers to produce engineered plastics, fibers, filaments, and films, which in turn are used in such end-products as automotive and electronic components, carpets, sports apparel, fishing nets and food and industrial packaging. In addition, it also sells a variety of other products, all of which are produced as part of the Nylon 6 resin manufacturing process including caprolactam, ammonium sulfate fertilizers, and other chemical intermediates. Geographically, the group operates through the United States and its business is also expanding internationally but it derives the majority of its revenue from the United States region.
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