Gross Margin % is calculated as gross profit divided by its revenue. Kellanova Co's Gross Profit for the
three
months ended in Dec. 2023 was $397 Mil. Kellanova Co's Revenue for the
three
months ended in Dec. 2023 was $1,089 Mil. Therefore, Kellanova Co's Gross Margin % for the quarter that ended in Dec. 2023 was 36.46%.
Warning Sign:
Kellanova Co gross margin has been in long-term decline. The average rate of decline per year is -1.7%.
The historical rank and industry rank for Kellanova Co's Gross Margin % or its related term are showing as below:
K'
s Gross Margin % Range Over the Past 10 Years
Min: 30.12 Med: 34.47 Max: 37.28
Current: 32.64
During the past 13 years, the highestGross Margin % of Kellanova Co was 37.28%. The lowest was 30.12%. And the median was 34.47%.
K's Gross Margin % is ranked better than 66.5% of 1809
companies
in the Consumer Packaged Goods industry
Industry Median: 25.04
vs K: 32.64
Kellanova Co had a gross margin of 36.46% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Kellanova Co was -1.70% per year.
Kellanova Co Gross Margin % Historical Data
The historical data trend for Kellanova 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.
Competitive Comparison of Kellanova Co's Gross Margin %
For the Packaged Foods subindustry, Kellanova 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.
Kellanova Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Kellanova Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kellanova Co'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.
Kellanova Co (NYSE:K) 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
Kellanova Co had a gross margin of 36.46% 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.
Kellanova Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Kellanova Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Following its split from the North American cereal business, Kellanova (previously the global snacking arm of Kellogg) is a leading global manufacturer and marketer of salty snacks, snack bars, frozen breakfast fare, meat alternatives, and other packaged foods. Its offerings are manufactured in around 20 countries and marketed in more than 180 countries. Its product mix includes well-known brands such as Pringles, Cheez-It, Rice Krispies Treats, Pop-Tarts, Eggo, Nutri-Grain, and Morningstar Farms. Sales beyond its home turf account for about half of Kellanova's consolidated sales base.
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