Dis-Chem Pharmacies (JSE:DCP) Gross Margin % : 22.29% (As of Aug. 2023)

Dis-Chem Pharmacies Gross Margin % Chart

Dis-Chem Pharmacies Annual Data
	Trend	Feb14	Feb15	Feb16	Feb17	Feb18	Feb19	Feb20	Feb21	Feb22	Feb23
Gross Margin %		Get a 7-Day Free Trial					24.38	23.16	22.21	22.46	23.23

Dis-Chem Pharmacies Semi-Annual Data
	Feb14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Gross Margin %	Get a 7-Day Free Trial														21.83	23.08	23.47	22.99	22.29

Competitive Comparison of Dis-Chem Pharmacies's Gross Margin %

For the Pharmaceutical Retailers subindustry, Dis-Chem Pharmacies'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.

Dis-Chem Pharmacies's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Dis-Chem Pharmacies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Dis-Chem Pharmacies's Gross Margin % falls into.

Dis-Chem Pharmacies Gross Margin % Calculation

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

Dis-Chem Pharmacies's Gross Margin for the fiscal year that ended in Feb. 2023 is calculated as

Dis-Chem Pharmacies's Gross Margin for the quarter that ended in Aug. 2023 is calculated as

* 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.

Dis-Chem Pharmacies  (JSE:DCP) 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

Dis-Chem Pharmacies had a gross margin of 22.29% for the quarter that ended in Aug. 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.

Dis-Chem Pharmacies Gross Margin % Related Terms

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Dis-Chem Pharmacies (JSE:DCP) Business Description