Gross Margin % is calculated as gross profit divided by its revenue. Holmen AB's Gross Profit for the
three
months ended in Mar. 2024 was kr2,800 Mil. Holmen AB's Revenue for the
three
months ended in Mar. 2024 was kr5,720 Mil. Therefore, Holmen AB's Gross Margin % for the quarter that ended in Mar. 2024 was 48.95%.
Warning Sign:
Holmen AB gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
The historical rank and industry rank for Holmen AB's Gross Margin % or its related term are showing as below:
OSTO:HOLM A'
s Gross Margin % Range Over the Past 10 Years
Min: 46.33 Med: 49.2 Max: 99.69
Current: 50.69
During the past 13 years, the highestGross Margin % of Holmen AB was 99.69%. The lowest was 46.33%. And the median was 49.20%.
OSTO:HOLM A's Gross Margin % is ranked better than 89.05% of 283
companies
in the Forest Products industry
Industry Median: 19.84
vs OSTO:HOLM A: 50.69
Holmen AB had a gross margin of 48.95% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Holmen AB was -3.50% per year.
Holmen AB Gross Margin % Historical Data
The historical data trend for Holmen AB'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 Holmen AB's Gross Margin %
For the Paper & Paper Products subindustry, Holmen AB'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.
Holmen AB's Gross Margin % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Holmen AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Holmen AB'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.
Holmen AB (OSTO:HOLM 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
Holmen AB had a gross margin of 48.95% for the quarter that ended in Mar. 2024 => 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.
Holmen AB Gross Margin % Related Terms
Thank you for viewing the detailed overview of Holmen AB's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Holmen AB produces and sells timber, wood products, a variety of paper products, and electricity generated through renewable energy sources. The company organizes itself into five segments based on product type: Forest, Paperboard, Paper, Wood Products, and Renewable Energy. The company's product portfolio includes logs, biofuel, paperboard for consumer packaging, paper for books, construction timber, and renewable energy from hydro and wind power. The company's customer segment is composed of printing firms, sawmills, pulp mills, paper mills, construction industry, and packaging industry, among others. The vast majority of revenue comes from the company's paper and paperboard segments combined, and it earns majoroty of its revenue in Europe.
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