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ACI Formulations (DHA:ACIFORMULA) Gross Margin % : 30.10% (As of Dec. 2023)


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What is ACI Formulations Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ACI Formulations's Gross Profit for the three months ended in Dec. 2023 was BDT418 Mil. ACI Formulations's Revenue for the three months ended in Dec. 2023 was BDT1,387 Mil. Therefore, ACI Formulations's Gross Margin % for the quarter that ended in Dec. 2023 was 30.10%.


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

DHA:ACIFORMULA' s Gross Margin % Range Over the Past 10 Years
Min: 24.83   Med: 27.63   Max: 31.15
Current: 26.94


During the past 13 years, the highest Gross Margin % of ACI Formulations was 31.15%. The lowest was 24.83%. And the median was 27.63%.

DHA:ACIFORMULA's Gross Margin % is ranked better than
57.26% of 234 companies
in the Agriculture industry
Industry Median: 22.83 vs DHA:ACIFORMULA: 26.94

ACI Formulations had a gross margin of 30.10% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for ACI Formulations was 0.40% per year.


ACI Formulations Gross Margin % Historical Data

The historical data trend for ACI Formulations'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.

ACI Formulations Gross Margin % Chart

ACI Formulations Annual Data
Trend Dec13 Dec14 Dec15 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.99 31.15 29.15 28.68 26.55

ACI Formulations 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.62 27.04 23.07 26.30 30.10

Competitive Comparison of ACI Formulations's Gross Margin %

For the Agricultural Inputs subindustry, ACI Formulations'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.


ACI Formulations's Gross Margin % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, ACI Formulations's Gross Margin % distribution charts can be found below:

* The bar in red indicates where ACI Formulations's Gross Margin % falls into.



ACI Formulations Gross Margin % Calculation

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

ACI Formulations's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=1316.9 / 4959.809
=(Revenue - Cost of Goods Sold) / Revenue
=(4959.809 - 3642.873) / 4959.809
=26.55 %

ACI Formulations'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 )
=417.6 / 1387.48
=(Revenue - Cost of Goods Sold) / Revenue
=(1387.48 - 969.878) / 1387.48
=30.10 %

* 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.


ACI Formulations  (DHA:ACIFORMULA) 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

ACI Formulations had a gross margin of 30.10% 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.


ACI Formulations Gross Margin % Related Terms

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ACI Formulations (DHA:ACIFORMULA) Business Description

Traded in Other Exchanges
N/A
Address
ACI Centre, 245, Tejgaon Industrial Area, Dhaka, BGD, 1208
ACI Formulations Ltd is an agricultural chemicals manufacturer. The principal activities of the company are manufacturing and marketing a number of agrochemical and consumer products. The company has structured its operations into the following business segments - Crop Care and Public Health segment, which manufactures and sell crop care and public health products; Mosquito Coil segment is engaged in the manufacturing and selling of mosquito coil products; the Aerosol segment is engaged in the manufacturing and selling aerosol and air freshener products; and Paint segment which manufactures and sells paint products. It derives key revenue from the Crop Care and Public Health segment.

ACI Formulations (DHA:ACIFORMULA) Headlines

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