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Concentric AB (FRA:2DN) Gross Margin % : 23.98% (As of Jun. 2024)


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What is Concentric AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Concentric AB's Gross Profit for the three months ended in Jun. 2024 was €20.3 Mil. Concentric AB's Revenue for the three months ended in Jun. 2024 was €84.6 Mil. Therefore, Concentric AB's Gross Margin % for the quarter that ended in Jun. 2024 was 23.98%.

Warning Sign:

Concentric AB gross margin has been in long-term decline. The average rate of decline per year is -5.7%.


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

FRA:2DN' s Gross Margin % Range Over the Past 10 Years
Min: 24.23   Med: 29   Max: 33.9
Current: 24.23


During the past 13 years, the highest Gross Margin % of Concentric AB was 33.90%. The lowest was 24.23%. And the median was 29.00%.

FRA:2DN's Gross Margin % is ranked worse than
57.59% of 2938 companies
in the Industrial Products industry
Industry Median: 26.74 vs FRA:2DN: 24.23

Concentric AB had a gross margin of 23.98% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Concentric AB was -5.70% per year.


Concentric AB Gross Margin % Historical Data

The historical data trend for Concentric AB'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.

Concentric AB Gross Margin % Chart

Concentric AB 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 31.16 30.83 29.31 26.26 25.23

Concentric AB Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 26.14 24.35 23.17 25.32 23.98

Competitive Comparison of Concentric AB's Gross Margin %

For the Specialty Industrial Machinery subindustry, Concentric AB'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.


Concentric AB's Gross Margin % Distribution in the Industrial Products Industry

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

* The bar in red indicates where Concentric AB's Gross Margin % falls into.



Concentric AB Gross Margin % Calculation

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

Concentric AB'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 )
=94.9 / 375.915
=(Revenue - Cost of Goods Sold) / Revenue
=(375.915 - 281.065) / 375.915
=25.23 %

Concentric AB's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=20.3 / 84.6
=(Revenue - Cost of Goods Sold) / Revenue
=(84.6 - 64.314) / 84.6
=23.98 %

* 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.


Concentric AB  (FRA:2DN) 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

Concentric AB had a gross margin of 23.98% for the quarter that ended in Jun. 2024 => 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.


Concentric AB Gross Margin % Related Terms

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


Concentric AB Business Description

Traded in Other Exchanges
Address
PO Box 5058, Stockholm, SWE, 102 42
Concentric AB is a Sweden-based company active in designing, development, and manufacturing of hydraulic and engine applications for Agriculture Machinery, Construction equipment, Trucks and Industrial applications. It offers solutions to the manufacturers of construction machinery, diesel engines and large trucks. It offers products related to fuel efficiency and reduced emissions. Its products include oil pumps, transmission pumps, coolant pumps, water pumps, compressor pumps, variable flow oil, Licos friction clutches, belt drives, gear pumps and motors, electro-hydraulic steering units, hydraulic power packs, and other products. The company has business segments in two product groups, namely engine products and hydraulic products.

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