Avenue Supermarts Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.1%.
The historical rank and industry rank for Avenue Supermarts's Gross Margin % or its related term are showing as below:
BOM:540376'
s Gross Margin % Range Over the Past 10 Years
Min: 14.44 Med: 14.8 Max: 15.68
Current: 14.48
During the past 12 years, the highestGross Margin % of Avenue Supermarts was 15.68%. The lowest was 14.44%. And the median was 14.80%.
BOM:540376's Gross Margin % is ranked worse than 76.45% of 310
companies
in the Retail - Defensive industry
Industry Median: 22.835
vs BOM:540376: 14.48
Avenue Supermarts had a gross margin of 14.88% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Avenue Supermarts was -1.10% per year.
Avenue Supermarts Gross Margin % Historical Data
The historical data trend for Avenue Supermarts'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 Avenue Supermarts's Gross Margin %
For the Discount Stores subindustry, Avenue Supermarts'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.
Avenue Supermarts's Gross Margin % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Avenue Supermarts's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avenue Supermarts'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
Avenue Supermarts had a gross margin of 14.88% 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.
Avenue Supermarts Gross Margin % Related Terms
Thank you for viewing the detailed overview of Avenue Supermarts's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Avenue Supermarts (BOM:540376) Business Description
Avenue Supermarts Ltd is an India-based company engaged in the business of organized retail and operates supermarkets under the brand name of D-Mart. It provides products under the categories of Foods, Non-Foods (FMCG) and General Merchandise and Apparel. Foods category includes products such as dairy, staples, groceries, snacks, frozen products, processed foods, beverages and confectionary and fruits and vegetables. Non-Foods (FMCG) comprises home care products, personal care products, toiletries and other over-the-counter products. General Merchandise and Apparel include bed and bath, toys and games, crockery, plastic goods, garments, footwear, utensils and home appliances. The business operations of the company are principally carried out in India.
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