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Gross Margin % is calculated as gross profit divided by its revenue. Forward Air's Gross Profit for the three months ended in Dec. 2023 was $36 Mil. Forward Air's Revenue for the three months ended in Dec. 2023 was $128 Mil. Therefore, Forward Air's Gross Margin % for the quarter that ended in Dec. 2023 was 28.25%.
The historical rank and industry rank for Forward Air's Gross Margin % or its related term are showing as below:
During the past 13 years, the highest Gross Margin % of Forward Air was 29.27%. The lowest was 18.05%. And the median was 20.89%.
Forward Air had a gross margin of 28.25% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Forward Air was 6.00% per year.
The historical data trend for Forward Air'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.
For the Integrated Freight & Logistics subindustry, Forward Air'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 Transportation industry and Industrials sector, Forward Air's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Forward Air's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Forward Air's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as
Gross Margin % (A: Dec. 2023 ) | = | Gross Profit (A: Dec. 2023 ) | / | Revenue (A: Dec. 2023 ) |
= | 330.2 | / | 1370.735 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (1370.735 - 1040.583) | / | 1370.735 | |
= | 24.09 % |
Forward Air's Gross Margin for the quarter that ended in Dec. 2023 is calculated as
Gross Margin % (Q: Dec. 2023 ) | = | Gross Profit (Q: Dec. 2023 ) | / | Revenue (Q: Dec. 2023 ) |
= | 36.2 | / | 128.04 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (128.04 - 91.869) | / | 128.04 | |
= | 28.25 % |
* 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.
Forward Air (NAS:FWRD) 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
Forward Air had a gross margin of 28.25% 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.
Thank you for viewing the detailed overview of Forward Air's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chris C Ruble | officer: Sr. Vice President, Operations | PO BOX 1058, GREENVILLIE TN 37744 |
Kyle R Mitchin | officer: Senior VP, Human Resources | 1915 SNAPPS FERRY ROAD, BUILDING N, GREENEVILLE TN 37745 |
Nancee L Ronning | officer: Chief Commercial Officer | 1915 SNAPPS FERRY ROAD, BUILDING N, GREENEVILLE TN 37745 |
Javier Polit | director | 1915 SNAPPS FERRY ROAD, BUILDING N, GREENEVILLE TN 37745 |
Mayes George S Jr | director | 5995 MAYFAIR ROAD, NORTH CANTON OH 44720 |
Craig Carlock | director | C/O THE FRESH MARKET, INC., 628 GREEN VALLEY ROAD, SUITE 500, GREENSBORO NC 27408 |
George M Lynch | director | 2566 KENT RIDGE COURT, BLOOMFIELD HILLS MI 48025 |
C Robert Campbell | director | 800 DOUGLAS ROAD, 12TH FLOOR, CORAL GABLES FL 33134 |
Michael L Hance | officer: Senior VP, CLO and Secretary | 430 AIRPORT ROAD, GREENEVILLE TN 37745 |
Chitra Nayak | director | 1400 16TH STREET, SAN FRANCISCO CA 94103 |
Thomas Schmitt | officer: President & CEO | 1915 SNAPPS FERRY ROAD, BUILDING N, GREENEVILLE TN 37745 |
Ronald W Allen | director | P O BOX 1734, ATLANTA GA 30301 |
Laurie Anne Tucker | director | 65 MARYS CREEK COVE NORTH, EADS TN 38028 |
Scott M Niswonger | director, 10 percent owner, officer: CEO & Chairman | 165 MADISON AVENUE, MEMPHIS TN 38103 |
Rebecca J Garbrick | officer: CAO, VP and Controller | 1915 SNAPPS FERRY ROAD, BUILDING N, GREENEVILLE TN 37745 |
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