Gross Margin % is calculated as gross profit divided by its revenue. BlueLinx Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $118 Mil. BlueLinx Holdings's Revenue for the
three
months ended in Dec. 2023 was $713 Mil. Therefore, BlueLinx Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 16.62%.
The historical rank and industry rank for BlueLinx Holdings's Gross Margin % or its related term are showing as below:
BXC'
s Gross Margin % Range Over the Past 10 Years
Min: 11.58 Med: 13.13 Max: 18.72
Current: 16.8
During the past 13 years, the highestGross Margin % of BlueLinx Holdings was 18.72%. The lowest was 11.58%. And the median was 13.13%.
BXC's Gross Margin % is ranked worse than 68.53% of 143
companies
in the Industrial Distribution industry
Industry Median: 23.42
vs BXC: 16.80
BlueLinx Holdings had a gross margin of 16.62% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for BlueLinx Holdings was 8.90% per year.
BlueLinx Holdings Gross Margin % Historical Data
The historical data trend for BlueLinx Holdings'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 BlueLinx Holdings's Gross Margin %
For the Industrial Distribution subindustry, BlueLinx Holdings'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.
BlueLinx Holdings's Gross Margin % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, BlueLinx Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BlueLinx Holdings'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.
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
BlueLinx Holdings had a gross margin of 16.62% for the quarter that ended in Dec. 2023 => No sustainable 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.
BlueLinx Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of BlueLinx Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
BlueLinx Holdings (BlueLinx Holdings) Business Description
BlueLinx Holdings Inc is engaged in the wholesale distribution of residential and commercial building products. Its business products are split into two categories: Structural products include items such as lumber, plywood, oriented strand board, rebar, and remesh and Specialty products include items such as engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products. The company's operations are carried out throughout the United States.
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