Li-Cycle Holdings (Li-Cycle Holdings) Gross Margin % : -876.56% (As of Dec. 2023)

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What is Li-Cycle Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Li-Cycle Holdings's Gross Profit for the three months ended in Dec. 2023 was $-56.10 Mil. Li-Cycle Holdings's Revenue for the three months ended in Dec. 2023 was $6.40 Mil. Therefore, Li-Cycle Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was -876.56%.

The historical rank and industry rank for Li-Cycle Holdings's Gross Margin % or its related term are showing as below:

LICY' s Gross Margin % Range Over the Past 10 Years
Min: -347 Med: -171.69 Max: 27.02
Current: -347

During the past 5 years, the highest Gross Margin % of Li-Cycle Holdings was 27.02%. The lowest was -347.00%. And the median was -171.69%.

LICY's Gross Margin % is ranked worse than
98.67% of 225 companies
in the Waste Management industry
Industry Median: 28.25 vs LICY: -347.00

Li-Cycle Holdings had a gross margin of -876.56% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Li-Cycle Holdings was 0.00% per year.

Li-Cycle Holdings Gross Margin % Historical Data

The historical data trend for Li-Cycle Holdings'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.

* Premium members only.

Li-Cycle Holdings Gross Margin % Chart

Li-Cycle Holdings Annual Data

Trend

Oct19

Oct20

Oct21

Oct22

Dec23

Gross Margin %

27.02

-82.19

-261.19

-346.99

Li-Cycle Holdings Quarterly Data
	Oct19	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial											-1,344.00	-116.67	-102.78	10.64	-876.56

Competitive Comparison of Li-Cycle Holdings's Gross Margin %

For the Waste Management subindustry, Li-Cycle Holdings'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.

Li-Cycle Holdings's Gross Margin % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Li-Cycle Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Li-Cycle Holdings's Gross Margin % falls into.

Li-Cycle Holdings Gross Margin % Calculation

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

Li-Cycle Holdings'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 )
	=	-63.5	/	18.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(18.3 - 81.8)	/	18.3
	=	-346.99 %

Li-Cycle Holdings'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 )
	=	-56.1	/	6.4
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6.4 - 62.5)	/	6.4
	=	-876.56 %

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.

Li-Cycle Holdings (NYSE:LICY) 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

Li-Cycle Holdings had a gross margin of -876.56% for the quarter that ended in Dec. 2023 => No sustainable 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.

Li-Cycle Holdings Gross Margin % Related Terms

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Li-Cycle Holdings (Li-Cycle Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Li-Cycle Holdings Corp (NYSE:LICY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

207 Queen’s Quay West, Suite 590, Toronto, ON, CAN, M5J 1A7

Website

https://www.li-cycle.com

Li-Cycle Holdings Corp is a lithium-ion battery resource recovery and the leading lithium-ion battery recycler. Its proprietary "Spoke and Hub" recycling process is designed at its Spokes, to process battery manufacturing scrap and end-of-life batteries to produce "black mass" and other intermediate products, and at its Hubs, to process black mass to recover raw materials, including but not limited to lithium carbonate, cobalt sulphate and nickel sulphate.