Gross Margin % is calculated as gross profit divided by its revenue. Brunswick's Gross Profit for the
three
months ended in Dec. 2023 was $364 Mil. Brunswick's Revenue for the
three
months ended in Dec. 2023 was $1,362 Mil. Therefore, Brunswick's Gross Margin % for the quarter that ended in Dec. 2023 was 26.76%.
The historical rank and industry rank for Brunswick's Gross Margin % or its related term are showing as below:
BC'
s Gross Margin % Range Over the Past 10 Years
Min: 24.95 Med: 27.68 Max: 28.58
Current: 27.92
During the past 13 years, the highestGross Margin % of Brunswick was 28.58%. The lowest was 24.95%. And the median was 27.68%.
BC's Gross Margin % is ranked better than 72.3% of 1267
companies
in the Vehicles & Parts industry
Industry Median: 19.36
vs BC: 27.92
Brunswick had a gross margin of 26.76% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Brunswick was 1.80% per year.
Brunswick Gross Margin % Historical Data
The historical data trend for Brunswick'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.
Competitive Comparison of Brunswick's Gross Margin %
For the Recreational Vehicles subindustry, Brunswick'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.
Brunswick's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Brunswick's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Brunswick's Gross Margin % falls into.
* 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.
Brunswick (NYSE:BC) 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
Brunswick had a gross margin of 26.76% 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.
Brunswick Gross Margin % Related Terms
Thank you for viewing the detailed overview of Brunswick's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Brunswick is a leading manufacturer in the marine recreation industry. The company has more than 60 brands delivering products across propulsion (outboard, sterndrive, and inboard engines, propulsion-related controls, rigging, and propellers), parts, accessories, and technology, and boats (including well-known brands like Boston Whaler and Sea Ray). It also owns numerous Freedom Boat Club (shared ownership) locations as well as Boateka, which facilitates transactions in the used boat market. Brunswick's focus surrounds building the innovative marine and recreational experiences, technologies, and connections supported by quality and innovation.
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