Gross Margin % is calculated as gross profit divided by its revenue. GWA Group's Gross Profit for the
six
months ended in Dec. 2023 was $55.5 Mil. GWA Group's Revenue for the
six
months ended in Dec. 2023 was $137.9 Mil. Therefore, GWA Group's Gross Margin % for the quarter that ended in Dec. 2023 was 40.28%.
Warning Sign:
GWA Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.4%.
The historical rank and industry rank for GWA Group's Gross Margin % or its related term are showing as below:
GWAXY'
s Gross Margin % Range Over the Past 10 Years
Min: 33.77 Med: 40.67 Max: 42.88
Current: 39.82
During the past 13 years, the highestGross Margin % of GWA Group was 42.88%. The lowest was 33.77%. And the median was 40.67%.
GWAXY's Gross Margin % is ranked better than 77.4% of 407
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 28.6
vs GWAXY: 39.82
GWA Group had a gross margin of 40.28% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for GWA Group was -2.40% per year.
GWA Group Gross Margin % Historical Data
The historical data trend for GWA Group'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 GWA Group's Gross Margin %
For the Furnishings, Fixtures & Appliances subindustry, GWA Group'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.
GWA Group's Gross Margin % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, GWA Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GWA Group'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.
GWA Group (OTCPK:GWAXY) 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
GWA Group had a gross margin of 40.28% for the quarter that ended in Dec. 2023 => 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.
GWA Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of GWA Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
GWA Group Ltd is a leading Australian designer of sanitary-ware and bathroom fittings, having undergone a significant divestment program to focus solely on front-of-wall bathroom and kitchen fittings markets. GWA's portfolio of brands includes Caroma, Dorf, Fowler, and Clark, with Caroma, in particular, enjoying the long history and high brand awareness in the Australian market. As part of GWA's efforts to reorient the business toward water supply solutions, the acquisition of Methven--a leading New Zealand shower and bathroom fittings manufacturer--was completed in April 2019.
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