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CIA Melhoramentos deo Paulo (BSP:MSPA4) Gross Margin % : 54.69% (As of Dec. 2023)


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What is CIA Melhoramentos deo Paulo Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. CIA Melhoramentos deo Paulo's Gross Profit for the three months ended in Dec. 2023 was R$20.5 Mil. CIA Melhoramentos deo Paulo's Revenue for the three months ended in Dec. 2023 was R$37.5 Mil. Therefore, CIA Melhoramentos deo Paulo's Gross Margin % for the quarter that ended in Dec. 2023 was 54.69%.

Warning Sign:

CIA Melhoramentos de Sao Paulo gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


The historical rank and industry rank for CIA Melhoramentos deo Paulo's Gross Margin % or its related term are showing as below:

BSP:MSPA4' s Gross Margin % Range Over the Past 10 Years
Min: 22.36   Med: 40.26   Max: 85.56
Current: 42.53


During the past 13 years, the highest Gross Margin % of CIA Melhoramentos deo Paulo was 85.56%. The lowest was 22.36%. And the median was 40.26%.

BSP:MSPA4's Gross Margin % is ranked better than
84.51% of 284 companies
in the Forest Products industry
Industry Median: 19.655 vs BSP:MSPA4: 42.53

CIA Melhoramentos deo Paulo had a gross margin of 54.69% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for CIA Melhoramentos deo Paulo was -1.80% per year.


CIA Melhoramentos deo Paulo Gross Margin % Historical Data

The historical data trend for CIA Melhoramentos deo Paulo'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.

* Premium members only.

CIA Melhoramentos deo Paulo Gross Margin % Chart

CIA Melhoramentos deo Paulo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.20 22.36 25.55 35.11 42.53

CIA Melhoramentos deo Paulo Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.98 37.02 41.60 39.11 54.69

Competitive Comparison of CIA Melhoramentos deo Paulo's Gross Margin %

For the Lumber & Wood Production subindustry, CIA Melhoramentos deo Paulo'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.


CIA Melhoramentos deo Paulo's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, CIA Melhoramentos deo Paulo's Gross Margin % distribution charts can be found below:

* The bar in red indicates where CIA Melhoramentos deo Paulo's Gross Margin % falls into.



CIA Melhoramentos deo Paulo Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

CIA Melhoramentos deo Paulo's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=75 / 176.279
=(Revenue - Cost of Goods Sold) / Revenue
=(176.279 - 101.307) / 176.279
=42.53 %

CIA Melhoramentos deo Paulo's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=20.5 / 37.538
=(Revenue - Cost of Goods Sold) / Revenue
=(37.538 - 17.008) / 37.538
=54.69 %

* 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.


CIA Melhoramentos deo Paulo  (BSP:MSPA4) 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

CIA Melhoramentos deo Paulo had a gross margin of 54.69% for the quarter that ended in Dec. 2023 => Durable 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.


CIA Melhoramentos deo Paulo Gross Margin % Related Terms

Thank you for viewing the detailed overview of CIA Melhoramentos deo Paulo's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


CIA Melhoramentos deo Paulo (BSP:MSPA4) Business Description

Traded in Other Exchanges
Address
Rua Tito 479, Sao Paulo, SP, BRA, 05051000
CIA Melhoramentos de Sao Paulo primarily engages in publishing business in Brazil. It offers paperback and digital books primarily for children, teenagers, and schools; cooking books; and customized books for companies. The company also engages in developing and maintaining forests; conducting reforestation activities of pines and eucalyptus; and urban, industrial, or infrastructure projects of real estate development. In addition, it is involved in the production of fibers, such as thermo ground wood, Bleached Thermo Ground Wood and Neolux Fibers, used as raw material for the production of paperboard, tissue and special papers.

CIA Melhoramentos deo Paulo (BSP:MSPA4) Headlines

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