McRae Industries (McRae Industries) Gross Margin % : 27.18% (As of Jul. 2023)

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What is McRae Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. McRae Industries's Gross Profit for the six months ended in Jul. 2023 was $33.9 Mil. McRae Industries's Revenue for the six months ended in Jul. 2023 was $124.7 Mil. Therefore, McRae Industries's Gross Margin % for the quarter that ended in Jul. 2023 was 27.18%.

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

MCRAA' s Gross Margin % Range Over the Past 10 Years
Min: 21.26 Med: 26.36 Max: 29.9
Current: 27.18

During the past 13 years, the highest Gross Margin % of McRae Industries was 29.90%. The lowest was 21.26%. And the median was 26.36%.

MCRAA's Gross Margin % is ranked better than
53.59% of 1032 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.35 vs MCRAA: 27.18

McRae Industries had a gross margin of 27.18% for the quarter that ended in Jul. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for McRae Industries was 4.60% per year.

McRae Industries Gross Margin % Historical Data

The historical data trend for McRae Industries'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.

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McRae Industries Gross Margin % Chart

McRae Industries Annual Data

Trend

Jul99

Jul00

Jul01

Jul02

Jul03

Jul04

Jul05

Jul21

Jul22

Jul23

Gross Margin %

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21.26

23.59

26.77

29.20

27.18

McRae Industries Semi-Annual Data
	Jul89	Jul90	Jul91	Jul92	Jul93	Jul94	Jul95	Jul96	Jul97	Jul98	Jul99	Jul00	Jul01	Jul02	Jul03	Jul04	Jul05	Jul21	Jul22	Jul23
Gross Margin %	Get a 7-Day Free Trial															21.26	23.59	26.77	29.20	27.18

Competitive Comparison of McRae Industries's Gross Margin %

For the Footwear & Accessories subindustry, McRae 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.

McRae Industries's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, McRae Industries's Gross Margin % distribution charts can be found below:

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

McRae Industries Gross Margin % Calculation

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

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

Gross Margin % (A: Jul. 2023 )	=	Gross Profit (A: Jul. 2023 )	/	Revenue (A: Jul. 2023 )
	=	33.9	/	124.702
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(124.702 - 90.808)	/	124.702
	=	27.18 %

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

Gross Margin % (Q: Jul. 2023 )	=	Gross Profit (Q: Jul. 2023 )	/	Revenue (Q: Jul. 2023 )
	=	33.9	/	124.702
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(124.702 - 90.808)	/	124.702
	=	27.18 %

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.

McRae Industries (OTCPK:MCRAA) 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

McRae Industries had a gross margin of 27.18% for the quarter that ended in Jul. 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.

McRae Industries Gross Margin % Related Terms

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McRae Industries (McRae Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » McRae Industries Inc (OTCPK:MCRAA) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MCRAB:USA

Address

400 North Main Street, P.O. Box 1239, Mount Gilead, NC, USA, 27306

Website

http://www.mcraeindustries.com

McRae Industries Inc operates in the footwear industry. Its principal lines of business are manufacturing and selling military combat boots and importing and selling western and work boots. It operates through the Western and Lifestyle Segments. The Western and Lifestyle segment, which is the key revenue driver, includes western, ladies fashion, and children's footwear products under the Dan Post, Dingo, and Laredo Western Boots brand names.