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Topgolf Callaway Brands (Topgolf Callaway Brands) Gross Margin % : 64.07% (As of Dec. 2023)


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What is Topgolf Callaway Brands Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Topgolf Callaway Brands's Gross Profit for the three months ended in Dec. 2023 was $575 Mil. Topgolf Callaway Brands's Revenue for the three months ended in Dec. 2023 was $897 Mil. Therefore, Topgolf Callaway Brands's Gross Margin % for the quarter that ended in Dec. 2023 was 64.07%.


The historical rank and industry rank for Topgolf Callaway Brands's Gross Margin % or its related term are showing as below:

MODG' s Gross Margin % Range Over the Past 10 Years
Min: 40.35   Med: 45.45   Max: 61.94
Current: 61.94


During the past 13 years, the highest Gross Margin % of Topgolf Callaway Brands was 61.94%. The lowest was 40.35%. And the median was 45.45%.

MODG's Gross Margin % is ranked better than
73.86% of 765 companies
in the Travel & Leisure industry
Industry Median: 43.19 vs MODG: 61.94

Topgolf Callaway Brands had a gross margin of 64.07% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Topgolf Callaway Brands was 7.90% per year.


Topgolf Callaway Brands Gross Margin % Historical Data

The historical data trend for Topgolf Callaway Brands'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.

Topgolf Callaway Brands Gross Margin % Chart

Topgolf Callaway Brands Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.08 41.37 59.47 60.34 61.94

Topgolf Callaway Brands 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 64.08 58.33 62.76 63.22 64.07

Competitive Comparison of Topgolf Callaway Brands's Gross Margin %

For the Leisure subindustry, Topgolf Callaway Brands'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.


Topgolf Callaway Brands's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Topgolf Callaway Brands's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Topgolf Callaway Brands's Gross Margin % falls into.



Topgolf Callaway Brands Gross Margin % Calculation

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

Topgolf Callaway Brands'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 )
=2654.1 / 4284.8
=(Revenue - Cost of Goods Sold) / Revenue
=(4284.8 - 1630.7) / 4284.8
=61.94 %

Topgolf Callaway Brands'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 )
=574.8 / 897.1
=(Revenue - Cost of Goods Sold) / Revenue
=(897.1 - 322.3) / 897.1
=64.07 %

* 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.


Topgolf Callaway Brands  (NYSE:MODG) 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

Topgolf Callaway Brands had a gross margin of 64.07% 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.


Topgolf Callaway Brands Gross Margin % Related Terms

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


Topgolf Callaway Brands (Topgolf Callaway Brands) Business Description

Traded in Other Exchanges
Address
2180 Rutherford Road, Carlsbad, CA, USA, 92008
Topgolf Callaway Brands Corp is a modern golf and active lifestyle company that provides world-class golf entertainment experiences, designs and manufactures premium golf equipment, and sells golf and active lifestyle apparel and other accessories. It operates in the below segments: Topgolf; Golf Equipment and Active Lifestyle. Some of its brands are Odyssey, OGIO, TravisMathew, and Jack Wolfskin. Its geographical segments are the United States, Europe, Japan, and the Rest of the World. Majority of the revenue is earned from United States.
Executives
Laura Jean Flanagan director 395 OYSTER POINT BLVD, SUITE 415, SOUTH SAN FRANCISCO CA 94080
Brewer Oliver G Iii officer: President and CEO 2180 RUTHERFORD ROAD, CARLSBAD CA 92008
Jennifer L. Thomas officer: Chief Accounting Officer 2180 RUTHERFORD ROAD, CARLSBAD CA 92008
Erik J Anderson director 1411 E MISSION AVE, SPOKANE WA 99202
Adebayo O. Ogunlesi director 2180 RUTHERFORD ROAD, CARLSBAD CA 92130
C. Matthew Turney director 2180 RUTHERFORD ROAD, CARLSBAD CA 92008
Rebecca Fine officer: EVP, Chief People Officer 2180 RUTHERFORD ROAD, CARLSBAD CA 92008
Brian P. Lynch officer: SVP, G.C. & Corp Secretary 2180 RUTHERFORD ROAD, CARLSBAD CA 92008
Samuel H Armacost director 2180 RUTHERFORD ROAD, CARLSBAD CA 92008
Varsha Rajendra Rao director 6155 EL CAMINO REAL, CARLSBAD CA 92009
Bavan Holloway director 8501 NORTH SCOTTSDALE ROAD, SUITE 100, SCOTTSDALE AZ 85253
Pep Tg Investments Lp 10 percent owner C/O PROVIDENCE EQUITY PARTNERS L.L.C., 50 KENNEDY PLAZA, 18TH FLOOR, PROVIDENCE RI 02903
Glenn F. Hickey officer: EVP, Callaway Golf 2180 RUTHERFORD ROAD, CARLSBAD CA 92008
Artie Starrs officer: CEO, Topgolf 2180 RUTHERFORD ROAD, CARLSBAD CA 92008
Westriver Management, Llc 10 percent owner 920 5TH AVENUE, SUITE 3450, SEATTLE WA 98104