America's Car-Mart Inc gross margin has been in long-term decline. The average rate of decline per year is -2.6%.
The historical rank and industry rank for America's Car-Mart's Gross Margin % or its related term are showing as below:
CRMT'
s Gross Margin % Range Over the Past 10 Years
Min: 42.66 Med: 47.98 Max: 48.63
Current: 44.56
During the past 13 years, the highestGross Margin % of America's Car-Mart was 48.63%. The lowest was 42.66%. And the median was 47.98%.
CRMT's Gross Margin % is ranked better than 92.28% of 1269
companies
in the Vehicles & Parts industry
Industry Median: 19.37
vs CRMT: 44.56
America's Car-Mart had a gross margin of 47.18% for the quarter that ended in Jan. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for America's Car-Mart was -2.60% per year.
America's Car-Mart Gross Margin % Historical Data
The historical data trend for America's Car-Mart'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 America's Car-Mart's Gross Margin %
For the Auto & Truck Dealerships subindustry, America's Car-Mart'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.
America's Car-Mart's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, America's Car-Mart's Gross Margin % distribution charts can be found below:
* The bar in red indicates where America's Car-Mart'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
America's Car-Mart had a gross margin of 47.18% 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.
America's Car-Mart Gross Margin % Related Terms
Thank you for viewing the detailed overview of America's Car-Mart's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
America's Car-Mart (America's Car-Mart) Business Description
America's Car-Mart Inc is an automotive retailer in us focused exclusively on the Integrated Auto Sales and Finance segment of the used car market. The Company's operations are principally conducted through its two operating subsidiaries, America's Car Mart Inc and Colonial Auto Finance. It primarily sells older model used vehicles and provides financing for substantially all of its customers. The Company earns revenue from the sale of used vehicles and in most cases a related service contract and an accident protection plan product, as well as interest income and late fees from the related financing.
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