Are Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -18.7%.
The historical rank and industry rank for Are Holdings's Gross Margin % or its related term are showing as below:
FRA:A19'
s Gross Margin % Range Over the Past 10 Years
Min: 6.63 Med: 19.62 Max: 24.44
Current: 6.63
During the past 13 years, the highestGross Margin % of Are Holdings was 24.44%. The lowest was 6.63%. And the median was 19.62%.
FRA:A19's Gross Margin % is ranked worse than 89.73% of 224
companies
in the Waste Management industry
Industry Median: 28.61
vs FRA:A19: 6.63
Are Holdings had a gross margin of 5.25% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Are Holdings was -18.70% per year.
Are Holdings Gross Margin % Historical Data
The historical data trend for Are Holdings'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 Are Holdings's Gross Margin %
For the Waste Management subindustry, Are Holdings'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.
Are Holdings's Gross Margin % Distribution in the Waste Management Industry
For the Waste Management industry and Industrials sector, Are Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Are Holdings'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.
Are Holdings (FRA:A19) 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
Are Holdings had a gross margin of 5.25% for the quarter that ended in Mar. 2024 => 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.
Are Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Are Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Are Holdings Inc formerly Asahi Holdings Inc is operative in the Japanese waste management industry. The company's principal interest lies in the precious metals recycling activities. This segment deals with the recycling and sale of precious metals and rare metals, including gold, silver, palladium, platinum, and indium, which are refined from precious metal-containing scraps inclusive of electronic materials, dental materials, jewelry manufacture and automobile catalysts. Asahi's secondary line of business is responsible for the collection, transportation and intermediate treatment of industrial wastes, such as waste acids, waste alkalis, waste oil, sludge, waste drugs and infectious medical wastes.
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