GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Coffee Holding Co Inc (NAS:JVA) » Definitions » Gross Margin %

Coffee Holding Co (Coffee Holding Co) Gross Margin %

: 17.81% (As of Jan. 2024)
View and export this data going back to 2005. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. Coffee Holding Co's Gross Profit for the three months ended in Jan. 2024 was $3.48 Mil. Coffee Holding Co's Revenue for the three months ended in Jan. 2024 was $19.54 Mil. Therefore, Coffee Holding Co's Gross Margin % for the quarter that ended in Jan. 2024 was 17.81%.

Warning Sign:

Coffee Holding Co Inc gross margin has been in long-term decline. The average rate of decline per year is -2%.


The historical rank and industry rank for Coffee Holding Co's Gross Margin % or its related term are showing as below:

JVA' s Gross Margin % Range Over the Past 10 Years
Min: 4.84   Med: 16.42   Max: 25.06
Current: 17.47


During the past 13 years, the highest Gross Margin % of Coffee Holding Co was 25.06%. The lowest was 4.84%. And the median was 16.42%.

JVA's Gross Margin % is ranked worse than
66.37% of 1805 companies
in the Consumer Packaged Goods industry
Industry Median: 24.96 vs JVA: 17.47

Coffee Holding Co had a gross margin of 17.81% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Coffee Holding Co was -2.00% per year.


Coffee Holding Co Gross Margin % Historical Data

The historical data trend for Coffee Holding Co'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.

* Premium members only.

Coffee Holding Co Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.57 19.81 25.06 16.76 16.08

Coffee Holding Co Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.66 18.48 15.54 17.90 17.81

Competitive Comparison

For the Packaged Foods subindustry, Coffee Holding Co'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.


Coffee Holding Co Gross Margin % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Coffee Holding Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Coffee Holding Co's Gross Margin % falls into.



Coffee Holding Co Gross Margin % Calculation

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

Coffee Holding Co's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )=Gross Profit (A: Oct. 2023 ) / Revenue (A: Oct. 2023 )
=11 / 68.173
=(Revenue - Cost of Goods Sold) / Revenue
=(68.173 - 57.214) / 68.173
=16.08 %

Coffee Holding Co's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=3.5 / 19.54
=(Revenue - Cost of Goods Sold) / Revenue
=(19.54 - 16.06) / 19.54
=17.81 %

* 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.


Coffee Holding Co  (NAS:JVA) 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

Coffee Holding Co had a gross margin of 17.81% for the quarter that ended in Jan. 2024 => 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.


Coffee Holding Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Coffee Holding Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Coffee Holding Co (Coffee Holding Co) Business Description

Traded in Other Exchanges
Address
3475 Victory Boulevard, Staten Island, NY, USA, 10314
Coffee Holding Co Inc is engaged in the business of wholesale coffee roasting and dealing. Its products include wholesale green coffee, private-label coffee, and branded coffee. The company sells its coffee products throughout the United States, Canada and certain countries in Asia.
Executives
John Rotelli director C/O COFFEE HOLDING CO., INC., 4401 FIRST AVENUE, BROOKLYN NY 11232
David Gordon director, officer: Executive VP, Secretary C/O COFFEE HOLDING CO INC, 4401 FIRST AVENUE, BROOKLYN NY 11237
Andrew Gordon director, officer: CEO and President C/O COFFEE HOLDING CO INC, 4401 FIRST AVENUE, BROOKLYN NY 11237
George F Thomas director C/O COFFEE HOLDING CO., INC., 3475 VICTORY BLVD., STATEN ISLAND NY 10314
Barry Knepper director C/O COFFEE HOLDING CO., INC., 4401 FIRST AVENUE, BROOKLYN NY 11232
Daniel Dwyer director C/O COFFEE HOLDING CO., INC., 4401 FIRST AVENUE, BROOKLYN NY 11232
Sal Reda director C/O COFFEE HOLDING CO., INC., 4401 FIRST AVENUE, BROOKLYN NY 11232
Gerard Decapua director 1171 BURNETT STREET, BROOKLYN NY 11242
Sterling A Gordon 10 percent owner C/O COFFEE HOLDING CO., INC., 4401 FIRST AVENUE, BROOKLYN NY 11232
Rachelle L Gordon 10 percent owner C/O COFFEE HOLDING CO., INC., 4401 FIRST AVENUE, BROOKLYN NY 11232
Robert M Williams director C/O COFFEE HOLDING CO. INC., 4401 FIRST AVENUE, BROOKLYN NY 11232