Archidply Industries Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for Archidply Industries's Gross Margin % or its related term are showing as below:
BOM:532994'
s Gross Margin % Range Over the Past 10 Years
Min: 24.68 Med: 28.1 Max: 31.79
Current: 24.68
During the past 13 years, the highestGross Margin % of Archidply Industries was 31.79%. The lowest was 24.68%. And the median was 28.10%.
BOM:532994's Gross Margin % is ranked better than 60.21% of 284
companies
in the Forest Products industry
Industry Median: 19.75
vs BOM:532994: 24.68
Archidply Industries had a gross margin of 29.18% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Archidply Industries was -1.90% per year.
Archidply Industries Gross Margin % Historical Data
The historical data trend for Archidply Industries'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 Archidply Industries's Gross Margin %
For the Lumber & Wood Production subindustry, Archidply Industries'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.
Archidply Industries's Gross Margin % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Archidply Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Archidply Industries'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.
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
Archidply Industries had a gross margin of 29.18% for the quarter that ended in Dec. 2023 => 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.
Archidply Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of Archidply Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Archidply Industries (BOM:532994) Business Description
Archidply Industries Ltd is engaged in manufacturing plywood, decorative plywood, and decorative laminates. The firm operates through two segments: Wood-based product and Paper-based product. The company's Wood-based products segment includes Plywood, Block Boar and Flush Doors etc. whereas Paper-based products segment includes Laminated Sheets (HPL). Its product range comprises of plywood, blockboard and flush doors, pre-laminated board, decorative laminates, and decorative veneers. Firm's products range includes MR Grade Plywood, Densified Film Faced Plywood, Fire Retardant Plywood, Shuttering Plywood, BWR Blockboard, BWP Flush Door, and Teak Block Board. Wood-based products segment continues to be the revenue generator for the company.
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