The Eastern Co (The Eastern Co) Gross Margin % : 26.77% (As of Dec. 2023)

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What is The Eastern Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Eastern Co's Gross Profit for the three months ended in Dec. 2023 was $17.9 Mil. The Eastern Co's Revenue for the three months ended in Dec. 2023 was $67.0 Mil. Therefore, The Eastern Co's Gross Margin % for the quarter that ended in Dec. 2023 was 26.77%.

Warning Sign:

The Eastern Co gross margin has been in long-term decline. The average rate of decline per year is -2.3%.

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

EML' s Gross Margin % Range Over the Past 10 Years
Min: 20.99 Med: 24.04 Max: 26.41
Current: 23.75

During the past 13 years, the highest Gross Margin % of The Eastern Co was 26.41%. The lowest was 20.99%. And the median was 24.04%.

EML's Gross Margin % is ranked worse than
58.09% of 2935 companies
in the Industrial Products industry
Industry Median: 26.42 vs EML: 23.75

The Eastern Co had a gross margin of 26.77% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The Eastern Co was -2.30% per year.

The Eastern Co Gross Margin % Historical Data

The historical data trend for The Eastern Co'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.

The Eastern Co Gross Margin % Chart

The Eastern Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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24.57

24.33

23.03

20.99

23.75

The Eastern Co 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															16.61	21.38	22.17	24.95	26.77

Competitive Comparison of The Eastern Co's Gross Margin %

For the Tools & Accessories subindustry, The Eastern Co'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.

The Eastern Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, The Eastern Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Eastern Co's Gross Margin % falls into.

The Eastern Co Gross Margin % Calculation

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

The Eastern Co'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 )
	=	65	/	273.455
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(273.455 - 208.502)	/	273.455
	=	23.75 %

The Eastern Co'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 )
	=	17.9	/	66.986
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(66.986 - 49.054)	/	66.986
	=	26.77 %

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.

The Eastern Co (NAS:EML) 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

The Eastern Co had a gross margin of 26.77% 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.

The Eastern Co Gross Margin % Related Terms

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The Eastern Co (The Eastern Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » The Eastern Co (NAS:EML) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3 Enterprise Drive, Suite 408, Shelton, CT, USA, 06484

Website

https://www.easterncompany.com

The Eastern Co manages industrial businesses that design, manufacture and sell engineered solutions to industrial markets. It operates in United States and Other Countries, and generates majority of the revenue from United States.

Executives

Frederick D. Disanto	director	6060 PARKLAND, SUITE 200, CLEVELAND OH 44124
Mark Anthony Hernandez	director	112 BRIDGE STREET, NAUGATUCK CT 06770
Michael J Mardy	director
Charles W Henry	director	62 TUNXIS VILLAGE, FARMINGTON CT 06032
James A Mitarotonda	director, 10 percent owner	888 SEVENTH AVENUE 17TH FL, NEW YORK NY 10019
Nicholas Alec Vlahos	officer: Chief Financial Officer	3 ENTERPRISE DRIVE SUITE 408, SHELTON CT 06484
Peter S. O'hara	officer: Chief Financial Officer	112 BRIDGE STREET, NAUGATUCK CT 06770
Barington Capital Group L P	director, 10 percent owner	888 SEVENTH AVENUE, 6TH FLOOR, NEW YORK NY 10019
Barington Companies Equity Partners L P	director, 10 percent owner	888 SEVENTH AVENUE, 6TH FLOOR, NEW YORK NY 10019
Barington Companies Investors, Llc	director, 10 percent owner	C/O BARINGTON CAPITAL GROUP, L.P., 888 SEVENTH AVENUE, 17TH FLOOR, NEW YORK NY 10019
James P. Woidke	officer: Chief Operating Officer	112 BRIDGE STREET, NAUGATUCK CT 06770
Sullivan John L Iii	officer: VP, Sect'y and Treas	13 CEDAR DRIVE, CROMWELL CT 06416
August M. Vlak	officer: President & CEO	112 BRIDGE STREET, NAUGATUCK CT 06770
Peggy Scott	director	15438 NORTH FLORIDA AVENUE, SUITE 201, TAMPA FL 33613
Angelo Labbadia	officer: Vice President & COO	230 SYCAMORE DRIVE, PROSPECT CT 06712