Gross Margin % is calculated as gross profit divided by its revenue. Sylvamo's Gross Profit for the
three
months ended in Dec. 2023 was $210 Mil. Sylvamo's Revenue for the
three
months ended in Dec. 2023 was $964 Mil. Therefore, Sylvamo's Gross Margin % for the quarter that ended in Dec. 2023 was 21.78%.
Warning Sign:
Sylvamo Corp 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 Sylvamo's Gross Margin % or its related term are showing as below:
SLVM'
s Gross Margin % Range Over the Past 10 Years
Min: 19.12 Med: 26.16 Max: 36.39
Current: 24.37
During the past 6 years, the highestGross Margin % of Sylvamo was 36.39%. The lowest was 19.12%. And the median was 26.16%.
SLVM's Gross Margin % is ranked better than 59.36% of 283
companies
in the Forest Products industry
Industry Median: 19.84
vs SLVM: 24.37
Sylvamo had a gross margin of 21.78% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Sylvamo was -6.60% per year.
Sylvamo Gross Margin % Historical Data
The historical data trend for Sylvamo'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 Sylvamo's Gross Margin %
For the Paper & Paper Products subindustry, Sylvamo'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.
Sylvamo's Gross Margin % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Sylvamo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sylvamo'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.
Sylvamo (NYSE:SLVM) 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
Sylvamo had a gross margin of 21.78% 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.
Sylvamo Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sylvamo's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sylvamo Corp is an uncoated papers company with a broad portfolio of top-tier brands and low-cost, large-scale paper mills, it produces uncoated freesheet (UFS) for paper products such as cut size and offset paper, as well as market pulp. The company offers Copy and Printer papers, Commercial Printing papers, Converting papers, and Specialty papers. It operates in three geographical segments: Europe, Latin America, and North America.
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