Brown-Forman (Brown-Forman) Gross Margin %

Brown-Forman Annual Data
	Trend	Apr14	Apr15	Apr16	Apr17	Apr18	Apr19	Apr20	Apr21	Apr22	Apr23
Gross Margin %							65.16	63.25	60.50	60.79	58.99

Brown-Forman Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %																57.72	60.71	62.72	60.61	59.40

For the Beverages - Wineries & Distilleries subindustry, Brown-Forman'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.

For the Beverages - Alcoholic industry and Consumer Defensive sector, Brown-Forman's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Brown-Forman's Gross Margin % falls into.

Brown-Forman Gross Margin % Calculation

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

Brown-Forman's Gross Margin for the fiscal year that ended in Apr. 2023 is calculated as

Brown-Forman's Gross Margin for the quarter that ended in Jan. 2024 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.

Brown-Forman  (NYSE:BF.B) 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

Brown-Forman had a gross margin of 59.40% for the quarter that ended in Jan. 2024 => 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.

Brown-Forman Gross Margin % Related Terms

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Brown-Forman (Brown-Forman) Business Description