The historical rank and industry rank for Darling Ingredients's Gross Margin % or its related term are showing as below:
DAR'
s Gross Margin % Range Over the Past 10 Years
Min: 21.06 Med: 22.67 Max: 26.19
Current: 24.23
During the past 13 years, the highestGross Margin % of Darling Ingredients was 26.19%. The lowest was 21.06%. And the median was 22.67%.
DAR's Gross Margin % is ranked worse than 51.52% of 1809
companies
in the Consumer Packaged Goods industry
Industry Median: 25.04
vs DAR: 24.23
Darling Ingredients had a gross margin of 27.04% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Darling Ingredients was 1.80% per year.
Darling Ingredients Gross Margin % Historical Data
The historical data trend for Darling Ingredients'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 Darling Ingredients's Gross Margin %
For the Packaged Foods subindustry, Darling Ingredients'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.
Darling Ingredients's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Darling Ingredients's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Darling Ingredients'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
Darling Ingredients had a gross margin of 27.04% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
Darling Ingredients Gross Margin % Related Terms
Thank you for viewing the detailed overview of Darling Ingredients's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Darling Ingredients (Darling Ingredients) Business Description
Darling Ingredients Inc develops and manufactures sustainable ingredients for customers in the pharmaceutical, food, pet food, fuel, and fertilizer industries. It collects and transforms all aspects of animal by-product streams into ingredients, including gelatin, fats, proteins, pet food ingredients, fertilizers, and other specialty products. Also, the company recovers and converts used cooking oil and bakery remnants into feed and fuel ingredients. Darling has three primary business segments: feed ingredients (the majority of revenue), food ingredients, and fuel ingredients. It provides grease trap services for food businesses and sells various equipment for collecting and delivering cooking oil. The company derives the majority of its revenue from customers in North America.
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