Hudaco Industries (JSE:HDC) Gross Margin % : 36.67% (As of Nov. 2023)

Hudaco Industries Gross Margin % Chart

Hudaco Industries Annual Data
	Trend	Nov14	Nov15	Nov16	Nov17	Nov18	Nov19	Nov20	Nov21	Nov22	Nov23
Gross Margin %		Get a 7-Day Free Trial					36.40	34.77	37.02	36.70	36.00

Hudaco Industries Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Gross Margin %	Get a 7-Day Free Trial															37.16	36.62	36.77	35.27	36.67

Competitive Comparison of Hudaco Industries's Gross Margin %

For the Industrial Distribution subindustry, Hudaco Industries'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.

Hudaco Industries's Gross Margin % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Hudaco Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hudaco Industries's Gross Margin % falls into.

Hudaco Industries Gross Margin % Calculation

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

Hudaco Industries's Gross Margin for the fiscal year that ended in Nov. 2023 is calculated as

Hudaco Industries's Gross Margin for the quarter that ended in Nov. 2023 is calculated as

* 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.

Hudaco Industries  (JSE:HDC) 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

Hudaco Industries had a gross margin of 36.67% for the quarter that ended in Nov. 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.

Hudaco Industries Gross Margin % Related Terms

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Hudaco Industries (JSE:HDC) Business Description