Park Lawn (TSX:PLC) Gross Margin % : 82.18% (As of Dec. 2023)

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What is Park Lawn Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Park Lawn's Gross Profit for the three months ended in Dec. 2023 was C$95.0 Mil. Park Lawn's Revenue for the three months ended in Dec. 2023 was C$115.6 Mil. Therefore, Park Lawn's Gross Margin % for the quarter that ended in Dec. 2023 was 82.18%.

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

TSX:PLC' s Gross Margin % Range Over the Past 10 Years
Min: 67.56 Med: 79.35 Max: 83.98
Current: 82.41

During the past 13 years, the highest Gross Margin % of Park Lawn was 83.98%. The lowest was 67.56%. And the median was 79.35%.

TSX:PLC's Gross Margin % is ranked better than
88.35% of 103 companies
in the Personal Services industry
Industry Median: 44.84 vs TSX:PLC: 82.41

Park Lawn had a gross margin of 82.18% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Park Lawn was 0.90% per year.

Park Lawn Gross Margin % Historical Data

The historical data trend for Park Lawn'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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Park Lawn Gross Margin % Chart

Park Lawn Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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79.99

83.98

83.33

82.83

82.42

Park Lawn 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															81.95	82.39	83.06	82.03	82.18

Competitive Comparison of Park Lawn's Gross Margin %

For the Personal Services subindustry, Park Lawn'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.

Park Lawn's Gross Margin % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Park Lawn's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Park Lawn's Gross Margin % falls into.

Park Lawn Gross Margin % Calculation

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

Park Lawn'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 )
	=	378.2	/	458.855
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(458.855 - 80.679)	/	458.855
	=	82.42 %

Park Lawn'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 )
	=	95	/	115.615
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(115.615 - 20.603)	/	115.615
	=	82.18 %

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.

Park Lawn (TSX:PLC) 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

Park Lawn had a gross margin of 82.18% 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.

Park Lawn Gross Margin % Related Terms

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Park Lawn (TSX:PLC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Park Lawn Corp (TSX:PLC) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

PRRWF:USA PL2:Germany

Address

2 St. Clair Avenue West, Suite 705, Toronto, ON, CAN, M4T 2T5

Website

https://www.parklawncorp.com

Park Lawn Corp provides goods and services associated with the disposition and memorialization of remains in Canada and the United States. It owns and operates cemeteries, crematoriums, and funeral homes, and funeral services business. The entity generates revenue from the sale of cemetery property interment rights, cemetery services and merchandise sales, and funeral services and merchandise sales. It operates in the United States and Canada, of which key revenue is generated from the United States.