American Green (American Green) Gross Margin % : 73.93% (As of Jun. 2023)

View and export this data going back to . Start your Free Trial

What is American Green Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. American Green's Gross Profit for the six months ended in Jun. 2023 was $2.80 Mil. American Green's Revenue for the six months ended in Jun. 2023 was $3.79 Mil. Therefore, American Green's Gross Margin % for the quarter that ended in Jun. 2023 was 73.93%.

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

ERBB' s Gross Margin % Range Over the Past 10 Years
Min: 68.91 Med: 71.42 Max: 73.93
Current: 73.93

During the past 2 years, the highest Gross Margin % of American Green was 73.93%. The lowest was 68.91%. And the median was 71.42%.

ERBB's Gross Margin % is ranked better than
87.17% of 990 companies
in the Drug Manufacturers industry
Industry Median: 46.74 vs ERBB: 73.93

American Green had a gross margin of 73.93% for the quarter that ended in Jun. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for American Green was 0.00% per year.

American Green Gross Margin % Historical Data

The historical data trend for American Green'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.

American Green Gross Margin % Chart

American Green Annual Data

Trend

Jun22

Jun23

Gross Margin %

68.91

73.93

American Green Semi-Annual Data
	Jun22	Jun23
Gross Margin %	68.91	73.93

Competitive Comparison of American Green's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, American Green'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.

American Green's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, American Green's Gross Margin % distribution charts can be found below:

* The bar in red indicates where American Green's Gross Margin % falls into.

American Green Gross Margin % Calculation

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

American Green's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	2.8	/	3.793
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3.793 - 0.989)	/	3.793
	=	73.93 %

American Green's Gross Margin for the quarter that ended in Jun. 2023 is calculated as

Gross Margin % (Q: Jun. 2023 )	=	Gross Profit (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	2.8	/	3.793
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3.793 - 0.989)	/	3.793
	=	73.93 %

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.

American Green (OTCPK:ERBB) 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

American Green had a gross margin of 73.93% for the quarter that ended in Jun. 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.

American Green Gross Margin % Related Terms

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

American Green (American Green) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » American Green Inc (OTCPK:ERBB) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

30 N Gould Street, Suite R, Sheridan, WY, USA, 82801

Website

https://www.americangreen.com

American Green Inc is a technology company in the medical cannabis industry. It is involved in the business of developing a cultivation facility in Phoenix Arizona for medical marijuana and also owns proprietary dispensing machines and all rights to a line of health supplements.