Gross Margin % is calculated as gross profit divided by its revenue. US Silica Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $109 Mil. US Silica Holdings's Revenue for the
three
months ended in Dec. 2023 was $336 Mil. Therefore, US Silica Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 32.52%.
The historical rank and industry rank for US Silica Holdings's Gross Margin % or its related term are showing as below:
SLCA'
s Gross Margin % Range Over the Past 10 Years
Min: 14.8 Med: 28.91 Max: 35.38
Current: 34.24
During the past 13 years, the highestGross Margin % of US Silica Holdings was 35.38%. The lowest was 14.80%. And the median was 28.91%.
SLCA's Gross Margin % is ranked better than 58.38% of 925
companies
in the Oil & Gas industry
Industry Median: 27.87
vs SLCA: 34.24
US Silica Holdings had a gross margin of 32.52% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for US Silica Holdings was 5.70% per year.
US Silica Holdings Gross Margin % Historical Data
The historical data trend for US Silica 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.
Competitive Comparison of US Silica Holdings's Gross Margin %
For the Oil & Gas Equipment & Services subindustry, US Silica 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.
US Silica Holdings's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, US Silica Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where US Silica Holdings'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.
US Silica Holdings (NYSE:SLCA) 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
US Silica Holdings had a gross margin of 32.52% 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.
US Silica Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of US Silica Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
US Silica Holdings (US Silica Holdings) Business Description
US Silica Holdings Inc is the supplier of sand used in the hydraulic fracturing of oil and gas wells. The company delivers sand in basins via its extensive logistics network and has an emerging last-mile logistics capability to deliver sand direct to the well site. Its operating segment includes Oil and Gas Proppants and Industrial and Specialty Products. The company generates maximum revenue from the Oil and Gas Proppants segment.
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