Avalon Holdings (Avalon Holdings) Gross Margin % : 16.51% (As of Dec. 2023)

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What is Avalon Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Avalon Holdings's Gross Profit for the three months ended in Dec. 2023 was $2.91 Mil. Avalon Holdings's Revenue for the three months ended in Dec. 2023 was $17.62 Mil. Therefore, Avalon Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 16.51%.

Warning Sign:

Avalon Holdings Corp gross margin has been in long-term decline. The average rate of decline per year is -2.5%.

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

AWX' s Gross Margin % Range Over the Past 10 Years
Min: 16.75 Med: 17.67 Max: 20.01
Current: 17.12

During the past 13 years, the highest Gross Margin % of Avalon Holdings was 20.01%. The lowest was 16.75%. And the median was 17.67%.

AWX's Gross Margin % is ranked worse than
75.45% of 224 companies
in the Waste Management industry
Industry Median: 28.41 vs AWX: 17.12

Avalon Holdings had a gross margin of 16.51% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Avalon Holdings was -2.50% per year.

Avalon Holdings Gross Margin % Historical Data

The historical data trend for Avalon Holdings'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.

Avalon Holdings Gross Margin % Chart

Avalon Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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17.68

19.93

19.25

17.20

17.11

Avalon Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															13.65	11.62	17.45	21.50	16.51

Competitive Comparison of Avalon Holdings's Gross Margin %

For the Waste Management subindustry, Avalon Holdings'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.

Avalon Holdings's Gross Margin % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Avalon Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Avalon Holdings's Gross Margin % falls into.

Avalon Holdings Gross Margin % Calculation

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

Avalon Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	13.8	/	80.515
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(80.515 - 66.735)	/	80.515
	=	17.11 %

Avalon Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	2.9	/	17.617
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(17.617 - 14.709)	/	17.617
	=	16.51 %

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.

Avalon Holdings (AMEX:AWX) 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

Avalon Holdings had a gross margin of 16.51% for the quarter that ended in Dec. 2023 => 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.

Avalon Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Avalon Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Avalon Holdings (Avalon Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Avalon Holdings Corp (AMEX:AWX) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

One American Way, Warren, OH, USA, 44484-5555

Website

https://www.avalonholdings.com

Avalon Holdings Corp is a waste management company. The company provides waste management services to industrial, commercial, municipal and governmental customers in selected northeastern and midwestern U.S. markets. It has two operating segments. The Waste management services segment which is the key revenue driver, includes waste disposal services, captive landfill operations, and saltwater injection well operations. Its Golf and related operations segment include management of golf courses and related clubhouses, a hotel, fitness centers, tennis courts, salon and spa services, dining, banquet and conference facilities and a travel agency.

Executives

Bryan Saksa	officer: CHIEF FINANCIAL OFFICER	ONE AMERICAN WAY, WARREN OH 44484
Christine Bell	officer: President	ONE AMERICAN WAY, WARREN OH 44484
Stephen L Gordon	director	41 WOODLAND PARK DRIVE, TENAFLY NJ 07670
Kenneth J Mcmahon	officer: See Remarks	ONE AMERICAN WAY, WARREN OH 44484
Kurtis Dean Gramley	director	1001 HIGHLAND ROAD, SHARON PA 16146
Mintbroker International, Ltd.	10 percent owner	ELIZABETH AVE. & BAY STREET, NASSAU C5 N-8340
David G Bozanich	director	7842 WALNUT STREET, YOUNGSTOWN OH 44512
Timothy C Coxson	officer: Chief Financial Officer	ONE AMERICAN WAY, WARREN OH 44484 5555
Robert Michael Arnoni	director	3757 LIBRARY ROAD, SUITE 250, PITTSBURGH PA 15234
Advisory Research Inc	10 percent owner	180 N. STETSON AVENUE, SUITE 5500, CHICAGO IL 60601
Advisory Research Microcap Value Fund, L.p.	10 percent owner	180 NORTH STETSON AVENUE, SUITE 5500, CHICAGO IL 60601
Lourde John Constable	10 percent owner	5 RADNOR CORP CENTER, 100 MATSONFORD ROAD SUITE 520, RADNOR PA 19087
Nalluri Anil Choudary Inc P/s Plan & Trust U/a/dtd 7/1/80	10 percent owner	5500 MARKET ST #128, C/O ANIL C NALLURI MD INC, YOUNGSTOWN OH 44512
Thomas C Kniss	director	ONE AMERICAN WAY, WARREN OH 44484