The historical rank and industry rank for Vector Group's Gross Margin % or its related term are showing as below:
VGR'
s Gross Margin % Range Over the Past 10 Years
Min: 30.7 Med: 32.14 Max: 36.96
Current: 32.22
During the past 13 years, the highestGross Margin % of Vector Group was 36.96%. The lowest was 30.70%. And the median was 32.14%.
VGR's Gross Margin % is ranked worse than 50.98% of 51
companies
in the Tobacco Products industry
Industry Median: 32.22
vs VGR: 32.22
Vector Group had a gross margin of 33.84% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Vector Group was 0.90% per year.
Vector Group Gross Margin % Historical Data
The historical data trend for Vector Group'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 Vector Group's Gross Margin %
For the Tobacco subindustry, Vector Group'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.
Vector Group's Gross Margin % Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Vector Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vector Group'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.
Vector Group (NYSE:VGR) 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
Vector Group had a gross margin of 33.84% 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.
Vector Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Vector Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Vector Group Ltd is a holding company whose subsidiaries--Liggett Group, Vector Tobacco, and New Valley-- primarily sell tobacco products and invest in real estate. The Liggett Group and Vector Tobacco subsidiaries sell cigarettes, primarily in the discount segment, in the United States under brand names Eagle 20's, Pyramid, Grand Prix, Liggett Select, and Eve. New Valley, through its majority ownership in Douglas Elliman Realty, invests in real estate worldwide. It also operates the largest residential brokerage company in the New York City area and has additional operations in South Florida, Beverly Hills, Aspen, and Connecticut. Tobacco accounts for more than half of total company revenue; real estate makes up the remainder.
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