The historical rank and industry rank for Raoom Trading Co's Gross Margin % or its related term are showing as below:
SAU:9529'
s Gross Margin % Range Over the Past 10 Years
Min: 33.56 Med: 34.02 Max: 38.86
Current: 38.86
During the past 2 years, the highestGross Margin % of Raoom Trading Co was 38.86%. The lowest was 33.56%. And the median was 34.02%.
SAU:9529's Gross Margin % is ranked better than 82.24% of 1610
companies
in the Construction industry
Industry Median: 19.17
vs SAU:9529: 38.86
Raoom Trading Co had a gross margin of 35.86% for the quarter that ended in Sep. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Raoom Trading Co was 0.00% per year.
Raoom Trading Co Gross Margin % Historical Data
The historical data trend for Raoom Trading Co'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 Raoom Trading Co's Gross Margin %
For the Building Products & Equipment subindustry, Raoom Trading Co'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.
Raoom Trading Co's Gross Margin % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Raoom Trading Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Raoom Trading Co'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.
Raoom Trading Co (SAU:9529) 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
Raoom Trading Co had a gross margin of 35.86% for the quarter that ended in Sep. 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.
Raoom Trading Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Raoom Trading Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Raoom Trading Co is engaged in the manufacturing and trading of glass, mirrors, and aluminum decorations. Its products include Mirrors, Polycarbonate, Clear Flat Glass, Stained Glass, Reflective Glass, Trajectory Glass and Grained Glass.
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