Gross Margin % is calculated as gross profit divided by its revenue. CHS's Gross Profit for the
three
months ended in Feb. 2019 was $427.41 Mil. CHS's Revenue for the
three
months ended in Feb. 2019 was $6,483.54 Mil. Therefore, CHS's Gross Margin % for the quarter that ended in Feb. 2019 was 6.59%.
The historical rank and industry rank for CHS's Gross Margin % or its related term are showing as below:
CHSCL.PFD'
s Gross Margin % Range Over the Past 10 Years
Min: 3.42 Med: 3.93 Max: 6.31
Current: 6.22
During the past 13 years, the highestGross Margin % of CHS was 6.31%. The lowest was 3.42%. And the median was 3.93%.
CHSCL.PFD's Gross Margin % is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 25.08
vs CHSCL.PFD: 6.22
CHS had a gross margin of 6.59% for the quarter that ended in Feb. 2019 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CHS was 3.80% per year.
CHS Gross Margin % Historical Data
The historical data trend for CHS'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.
For the Farm Products subindustry, CHS'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.
CHS's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CHS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CHS'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.
CHS (NAS:CHSCL.PFD) 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
CHS had a gross margin of 6.59% for the quarter that ended in Feb. 2019 => 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.
CHS Gross Margin % Related Terms
Thank you for viewing the detailed overview of CHS's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
CHS Inc is an integrated agricultural enterprise, that provides grain, food and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles to the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Maximum revenue is generated from Ag segment.
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