Rockwool AS (OCSE:ROCK A) Gross Margin % : 64.35% (As of Dec. 2023)

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What is Rockwool AS Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Rockwool AS's Gross Profit for the three months ended in Dec. 2023 was kr4,480 Mil. Rockwool AS's Revenue for the three months ended in Dec. 2023 was kr6,962 Mil. Therefore, Rockwool AS's Gross Margin % for the quarter that ended in Dec. 2023 was 64.35%.

Warning Sign:

Rockwool AS gross margin has been in long-term decline. The average rate of decline per year is -1.9%.

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

OCSE:ROCK A' s Gross Margin % Range Over the Past 10 Years
Min: 56.95 Med: 64.84 Max: 67.52
Current: 64.03

During the past 13 years, the highest Gross Margin % of Rockwool AS was 67.52%. The lowest was 56.95%. And the median was 64.84%.

OCSE:ROCK A's Gross Margin % is ranked better than
94.36% of 1613 companies
in the Construction industry
Industry Median: 19.2 vs OCSE:ROCK A: 64.03

Rockwool AS had a gross margin of 64.35% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Rockwool AS was -1.90% per year.

Rockwool AS Gross Margin % Historical Data

The historical data trend for Rockwool AS'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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Rockwool AS Gross Margin % Chart

Rockwool AS Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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66.30

67.52

63.86

56.95

64.03

Rockwool AS 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															58.53	62.36	64.34	65.01	64.35

Competitive Comparison of Rockwool AS's Gross Margin %

For the Building Products & Equipment subindustry, Rockwool AS'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.

Rockwool AS's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Rockwool AS's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Rockwool AS's Gross Margin % falls into.

Rockwool AS Gross Margin % Calculation

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

Rockwool AS's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	17277.1	/	26981.435
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(26981.435 - 9704.372)	/	26981.435
	=	64.03 %

Rockwool AS'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 )
	=	4479.5	/	6961.508
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6961.508 - 2481.993)	/	6961.508
	=	64.35 %

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.

Rockwool AS (OCSE:ROCK A) 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

Rockwool AS had a gross margin of 64.35% for the quarter that ended in Dec. 2023 => Durable 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.

Rockwool AS Gross Margin % Related Terms

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Rockwool AS (OCSE:ROCK A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Rockwool AS (OCSE:ROCK A) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ROCKBc:UK 0M0A:UK ROCK B:Denmark R90:Germany

Address

Hovedgaden 584, Hedehusene, DNK, 2640

Website

https://www.rockwool.com

Rockwool AS manufactures and sells building materials, including insulation, and roofing systems. The company organizes itself into two segments based on the product: Insulation and Systems. The Insulation segment, which generates the majority of revenue, sells building, industrial, and technical insulation and external thermal insulation wall systems to the construction industry. The Systems business sells acoustic ceilings and wall systems, external cladding systems, horticultural substrate solutions, engineered fiber solutions, and noise and vibration control to the construction and automotive industries. The majority of sales come from Europe.

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