Gross Margin % is calculated as gross profit divided by its revenue. O-I Glass's Gross Profit for the
three
months ended in Dec. 2023 was $231 Mil. O-I Glass's Revenue for the
three
months ended in Dec. 2023 was $1,641 Mil. Therefore, O-I Glass's Gross Margin % for the quarter that ended in Dec. 2023 was 14.08%.
The historical rank and industry rank for O-I Glass's Gross Margin % or its related term are showing as below:
OI'
s Gross Margin % Range Over the Past 10 Years
Min: 15.96 Med: 18.26 Max: 21.06
Current: 21.04
During the past 13 years, the highestGross Margin % of O-I Glass was 21.06%. The lowest was 15.96%. And the median was 18.26%.
OI's Gross Margin % is ranked worse than 53.66% of 369
companies
in the Packaging & Containers industry
Industry Median: 21.66
vs OI: 21.04
O-I Glass had a gross margin of 14.08% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for O-I Glass was 1.80% per year.
O-I Glass Gross Margin % Historical Data
The historical data trend for O-I Glass'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.
For the Packaging & Containers subindustry, O-I Glass'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.
O-I Glass Gross Margin % Distribution
For the Packaging & Containers industry and Consumer Cyclical sector, O-I Glass's Gross Margin % distribution charts can be found below:
* The bar in red indicates where O-I Glass'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.
O-I Glass (NYSE:OI) 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
O-I Glass had a gross margin of 14.08% 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.
O-I Glass Gross Margin % Related Terms
Thank you for viewing the detailed overview of O-I Glass's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
O-I Glass is the world's largest manufacturer of glass bottles; 70% of its revenue comes from outside the United States. O-I has a market-leading position in key markets such as Europe, North America, and Brazil, among others. Beer is the primary end market for O-I's glass bottles, which are also used for wine, soda, spirits, condiments, and food. In the coming years, O-I is looking to maintain or expand its dominant positions in Europe, North America, and South America.
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