Delta Spinners (DHA:DELTASPINN) Gross Margin % : 7.12% (As of Mar. 2024)

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What is Delta Spinners Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Delta Spinners's Gross Profit for the three months ended in Mar. 2024 was BDT17.0 Mil. Delta Spinners's Revenue for the three months ended in Mar. 2024 was BDT238.5 Mil. Therefore, Delta Spinners's Gross Margin % for the quarter that ended in Mar. 2024 was 7.12%.

Warning Sign:

Delta Spinners Ltd gross margin has been in long-term decline. The average rate of decline per year is -3%.

The historical rank and industry rank for Delta Spinners's Gross Margin % or its related term are showing as below:

DHA:DELTASPINN' s Gross Margin % Range Over the Past 10 Years
Min: 3.89 Med: 15.53 Max: 16.38
Current: 3.89

During the past 6 years, the highest Gross Margin % of Delta Spinners was 16.38%. The lowest was 3.89%. And the median was 15.53%.

DHA:DELTASPINN's Gross Margin % is ranked worse than
91.32% of 1025 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 26.22 vs DHA:DELTASPINN: 3.89

Delta Spinners had a gross margin of 7.12% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Delta Spinners was -3.00% per year.

Delta Spinners Gross Margin % Historical Data

The historical data trend for Delta Spinners'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.

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Delta Spinners Gross Margin % Chart

Delta Spinners Annual Data

Trend

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Gross Margin %

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16.19

14.86

14.27

14.51

Delta Spinners Quarterly Data
	Dec17	Mar18	Sep18	Dec18	Mar19	Sep19	Dec19	Mar20	Sep20	Dec20	Mar21	Sep21	Dec21	Mar22	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															7.30	11.99	2.23	2.58	7.12

Competitive Comparison of Delta Spinners's Gross Margin %

For the Textile Manufacturing subindustry, Delta Spinners'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.

Delta Spinners's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Delta Spinners's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Delta Spinners's Gross Margin % falls into.

Delta Spinners Gross Margin % Calculation

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

Delta Spinners's Gross Margin for the fiscal year that ended in Jun. 2017 is calculated as

Gross Margin % (A: Jun. 2017 )	=	Gross Profit (A: Jun. 2017 )	/	Revenue (A: Jun. 2017 )
	=	156.4	/	1077.548
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1077.548 - 921.17)	/	1077.548
	=	14.51 %

Delta Spinners's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	17	/	238.523
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(238.523 - 221.543)	/	238.523
	=	7.12 %

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.

Delta Spinners (DHA:DELTASPINN) 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

Delta Spinners had a gross margin of 7.12% 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.

Delta Spinners Gross Margin % Related Terms

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Delta Spinners (DHA:DELTASPINN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Delta Spinners Ltd (DHA:DELTASPINN) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

254-B Khilgaon Chowdhury Para, Dhaka, BGD, 1219

Website

http://www.delta-spinners.com

Delta Spinners Ltd is Bangladesh based company and primarily engages in manufactures cotton yarn. The firm has a composite unit, having knitting, dyeing, finishing and sewing units under a single roof. The company is also involved in the making of jersey, sportswear, suits and other luxury clothing is on the rise in recent years and for this reason, demand for high-end yarns is also growing.

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