Decibel Cannabis Co (TSXV:DB) Gross Margin % : 42.16% (As of Sep. 2023)

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What is Decibel Cannabis Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Decibel Cannabis Co's Gross Profit for the three months ended in Sep. 2023 was C$12.7 Mil. Decibel Cannabis Co's Revenue for the three months ended in Sep. 2023 was C$30.2 Mil. Therefore, Decibel Cannabis Co's Gross Margin % for the quarter that ended in Sep. 2023 was 42.16%.

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

TSXV:DB' s Gross Margin % Range Over the Past 10 Years
Min: 32.11 Med: 36.34 Max: 53.71
Current: 32.19

During the past 13 years, the highest Gross Margin % of Decibel Cannabis Co was 53.71%. The lowest was 32.11%. And the median was 36.34%.

TSXV:DB's Gross Margin % is ranked worse than
74.16% of 987 companies
in the Drug Manufacturers industry
Industry Median: 46.53 vs TSXV:DB: 32.19

Decibel Cannabis Co had a gross margin of 42.16% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Decibel Cannabis Co was 0.00% per year.

Decibel Cannabis Co Gross Margin % Historical Data

The historical data trend for Decibel Cannabis 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.

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Decibel Cannabis Co Gross Margin % Chart

Decibel Cannabis Co Annual Data

Trend

Jul13

Jul14

Jul15

Jul16

Jul17

Jul18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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32.11

39.35

53.71

33.32

Decibel Cannabis Co Quarterly Data
	Oct18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															63.82	23.82	34.81	27.11	42.16

Competitive Comparison of Decibel Cannabis Co's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Decibel Cannabis 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.

Decibel Cannabis Co's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Decibel Cannabis Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Decibel Cannabis Co's Gross Margin % falls into.

Decibel Cannabis Co Gross Margin % Calculation

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

Decibel Cannabis Co's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	26.4	/	79.326
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(79.326 - 52.896)	/	79.326
	=	33.32 %

Decibel Cannabis Co's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	12.7	/	30.19
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(30.19 - 17.462)	/	30.19
	=	42.16 %

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.

Decibel Cannabis Co (TSXV:DB) 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

Decibel Cannabis Co had a gross margin of 42.16% for the quarter that ended in Sep. 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.

Decibel Cannabis Co Gross Margin % Related Terms

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Decibel Cannabis Co (TSXV:DB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Decibel Cannabis Co Inc (TSXV:DB) » Definitions » Gross Margin %

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Traded in Other Exchanges

DBCCF:USA

Address

140 - 4th Avenue SW, Suite 1440, Calgary, AB, CAN, T2P 3N3

Website

https://www.decibelcc.com

Decibel Cannabis Co Inc is engaged in the cannabis operations business. It is involved in the production, distribution, and sale of recreational cannabis. All the revenues are generated in Canada. The company's revenue is comprised of wholesale sales of both products and services through its production facilities to distributors and licensed cannabis producers as well as the direct sale of products through its retail locations to end customers.