Advantage Solutions Inc gross margin has been in long-term decline. The average rate of decline per year is -4.4%.
The historical rank and industry rank for Advantage Solutions's Gross Margin % or its related term are showing as below:
ADV'
s Gross Margin % Range Over the Past 10 Years
Min: 13.36 Med: 17.07 Max: 23.28
Current: 13.58
During the past 8 years, the highestGross Margin % of Advantage Solutions was 23.28%. The lowest was 13.36%. And the median was 17.07%.
ADV's Gross Margin % is ranked worse than 86.53% of 965
companies
in the Media - Diversified industry
Industry Median: 38.36
vs ADV: 13.58
Advantage Solutions had a gross margin of 13.10% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Advantage Solutions was -4.40% per year.
Advantage Solutions Gross Margin % Historical Data
The historical data trend for Advantage Solutions'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 Advantage Solutions's Gross Margin %
For the Advertising Agencies subindustry, Advantage Solutions'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.
Advantage Solutions's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Advantage Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Advantage Solutions'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.
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
Advantage Solutions had a gross margin of 13.10% for the quarter that ended in Mar. 2024 => 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.
Advantage Solutions Gross Margin % Related Terms
Thank you for viewing the detailed overview of Advantage Solutions's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Advantage Solutions (Advantage Solutions) Business Description
Advantage Solutions Inc is the provider of outsourced sales and marketing solutions to consumer goods companies and retailers. It has a technology-enabled platform of sales and marketing services like headquarter sales, retail merchandising, in-store sampling, digital commerce, and shopper marketing. For brands and retailers of all sizes, the firm helps to get the right products on the shelf and into the hands of consumers. The company helps its clients to sell more while spending less. Advantage has offices throughout North America and strategic investments in select markets throughout Africa, Asia, Australia, and Europe through which it services the global needs of multinational, regional, and local manufacturers. Its services are provided across two segments sales and marketing.
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