Gross Margin % is calculated as gross profit divided by its revenue. Sheela Foam's Gross Profit for the
three
months ended in Mar. 2024 was ₹3,279 Mil. Sheela Foam's Revenue for the
three
months ended in Mar. 2024 was ₹8,451 Mil. Therefore, Sheela Foam's Gross Margin % for the quarter that ended in Mar. 2024 was 38.79%.
Warning Sign:
Sheela Foam Ltd gross margin has been in long-term decline. The average rate of decline per year is -4%.
The historical rank and industry rank for Sheela Foam's Gross Margin % or its related term are showing as below:
BOM:540203'
s Gross Margin % Range Over the Past 10 Years
Min: 32.32 Med: 40.35 Max: 45.88
Current: 37.56
During the past 9 years, the highestGross Margin % of Sheela Foam was 45.88%. The lowest was 32.32%. And the median was 40.35%.
BOM:540203's Gross Margin % is ranked better than 71.36% of 405
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 29.09
vs BOM:540203: 37.56
Sheela Foam had a gross margin of 38.79% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Sheela Foam was -4.00% per year.
Sheela Foam Gross Margin % Historical Data
The historical data trend for Sheela Foam'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 Sheela Foam's Gross Margin %
For the Furnishings, Fixtures & Appliances subindustry, Sheela Foam'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.
Sheela Foam's Gross Margin % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Sheela Foam's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sheela Foam'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
Sheela Foam had a gross margin of 38.79% 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.
Sheela Foam Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sheela Foam's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sheela Foam Ltd is a manufacturer of mattresses and other foam-based home comfort products. Its Home comfort line of product portfolio includes Mattresses, Pillows, Mattress protectors, Bolsters, Back cushions, Sofa-cum beds, Bedsheets, and Baby care sheets. It also offers a Technical range of products such as Laminated foam, Reticulated foam, UV stable foam, Sound absorption foam, and Anti-static foam. It caters products to different industries such as bedding, furniture, automotive, shoes, lingerie, electronic, acoustic enclosures, and garments. Geographically, the organization sells its products in India and also exports them to other countries. It derives a majority of the revenue from the sales of the Home comfort line of products. The company's flagship brand is Sleepwell.
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