The historical rank and industry rank for Ayr Wellness's Gross Margin % or its related term are showing as below:
XCNQ:AYR.A'
s Gross Margin % Range Over the Past 10 Years
Min: 34.92 Med: 41.52 Max: 57.22
Current: 43.64
During the past 6 years, the highestGross Margin % of Ayr Wellness was 57.22%. The lowest was 34.92%. And the median was 41.52%.
XCNQ:AYR.A's Gross Margin % is ranked worse than 56.03% of 987
companies
in the Drug Manufacturers industry
Industry Median: 46.23
vs XCNQ:AYR.A: 43.64
Ayr Wellness had a gross margin of 43.00% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ayr Wellness was 0.00% per year.
Ayr Wellness Gross Margin % Historical Data
The historical data trend for Ayr Wellness'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 Ayr Wellness's Gross Margin %
For the Drug Manufacturers - Specialty & Generic subindustry, Ayr Wellness'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.
Ayr Wellness's Gross Margin % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ayr Wellness's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ayr Wellness'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.
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
Ayr Wellness had a gross margin of 43.00% 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.
Ayr Wellness Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ayr Wellness's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ayr Wellness Inc is a vertically integrated, U.S. multi-state cannabis operator, focused on delivering quality cannabis products and customer experience throughout its footprint. The company is focused on superior cultivation to grow superior branded cannabis products.
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