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Natural Alternatives International (Natural Alternatives International) Gross Margin % : 1.54% (As of Dec. 2023)


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What is Natural Alternatives International Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Natural Alternatives International's Gross Profit for the three months ended in Dec. 2023 was $0.4 Mil. Natural Alternatives International's Revenue for the three months ended in Dec. 2023 was $25.2 Mil. Therefore, Natural Alternatives International's Gross Margin % for the quarter that ended in Dec. 2023 was 1.54%.

Warning Sign:

Natural Alternatives International Inc gross margin has been in long-term decline. The average rate of decline per year is -6.6%.


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

NAII' s Gross Margin % Range Over the Past 10 Years
Min: 7.9   Med: 17.54   Max: 22.12
Current: 7.9


During the past 13 years, the highest Gross Margin % of Natural Alternatives International was 22.12%. The lowest was 7.90%. And the median was 17.54%.

NAII's Gross Margin % is ranked worse than
87.56% of 1809 companies
in the Consumer Packaged Goods industry
Industry Median: 25.04 vs NAII: 7.90

Natural Alternatives International had a gross margin of 1.54% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Natural Alternatives International was -6.60% per year.


Natural Alternatives International Gross Margin % Historical Data

The historical data trend for Natural Alternatives International'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.

Natural Alternatives International Gross Margin % Chart

Natural Alternatives International Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.05 15.87 17.05 17.85 11.79

Natural Alternatives International 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.69 4.21 14.48 9.23 1.54

Competitive Comparison of Natural Alternatives International's Gross Margin %

For the Packaged Foods subindustry, Natural Alternatives International'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.


Natural Alternatives International's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Natural Alternatives International's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Natural Alternatives International's Gross Margin % falls into.



Natural Alternatives International Gross Margin % Calculation

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

Natural Alternatives International's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=18.2 / 154.015
=(Revenue - Cost of Goods Sold) / Revenue
=(154.015 - 135.857) / 154.015
=11.79 %

Natural Alternatives International'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 )
=0.4 / 25.202
=(Revenue - Cost of Goods Sold) / Revenue
=(25.202 - 24.815) / 25.202
=1.54 %

* 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.


Natural Alternatives International  (NAS:NAII) 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

Natural Alternatives International had a gross margin of 1.54% 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.


Natural Alternatives International Gross Margin % Related Terms

Thank you for viewing the detailed overview of Natural Alternatives International's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Natural Alternatives International (Natural Alternatives International) Business Description

Traded in Other Exchanges
Address
1535 Faraday Avenue, Carlsbad, CA, USA, 92008
Natural Alternatives International Inc is engaged in formulating, manufacturing, and marketing nutritional supplements. It offers vitamins, minerals, herbs, and other supplements, as well as other healthcare products to customers within the United States and internationally. Its business activity is operated through Private-Label Contract Manufacturing and Patent & Trademark Licensing segment. The company derives the majority of revenue from Private-Label Contract Manufacturing which is engaged in providing manufacturing services to companies that market and distribute nutritional supplements and other healthcare products, whereas the Patent and Trademark Licensing segment includes royalty income from its license and supply agreements associated with the sale.
Executives
Mark A Ledoux director, 10 percent owner, officer: CEO/Chairman 1185 LINDA VISTA DR, SAN MARCOS CA 92069
Joe E Davis director 3436 CARIBETH DR, ENCINO CA 91436
Lee G Weldon director 1185 LINDA VISTA DRIVE, SAN MARCAS CA 92069
Alan G Dunn director 1185 LINDA VISTA DR., SUITE A, SAN MARCOS X1 92078
Michael E Fortin officer: Chief Financial Officer 1185 LINDA VISTA DRIVE, SAN MARCOS CA 92078
Kenneth Wolf officer: Chief Financial Officer 12626 HIGH BLUFF DRIVE, SUITE 440, SAN DIEGO CA 92130
Alan J Lane director 41090 AVENIDA VERDE, TEMECULA CA 92591
Guru Ramanathan director C/O GNC HOLDINGS, INC., 300 SIXTH AVENUE, PITTSBURGH PA 15222
Laura Kay Matherly director 1535 FARADAY AVENUE, CARLSBAD CA 92008
Edward Borg 10 percent owner 600 SOUTH US HIGHWAY 1, APT. 609, JUPITER FL 33477
Alvin Mccurdy officer: V.P. of Operations 1185 LINDA VISTA DR., SUITE A, SAN MARCOS CA 92078
Carl J Terranova other: Member of 13(d) 10% group 159 CHRYSTIE ST, NEW YORK NY 10002
Thomas H Hansen 10 percent owner
John Dullea officer: President, RHL (Subsidiary) 12189 CAMINITO CORRIENTE, SAN DIEGO CA 92128
Randell Weaver officer: President

Natural Alternatives International (Natural Alternatives International) Headlines

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