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Distribution Solutions Group (Distribution Solutions Group) Gross Margin % : 33.98% (As of Dec. 2023)


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What is Distribution Solutions Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Distribution Solutions Group's Gross Profit for the three months ended in Dec. 2023 was $138 Mil. Distribution Solutions Group's Revenue for the three months ended in Dec. 2023 was $405 Mil. Therefore, Distribution Solutions Group's Gross Margin % for the quarter that ended in Dec. 2023 was 33.98%.

Warning Sign:

Distribution Solutions Group Inc gross margin has been in long-term decline. The average rate of decline per year is -11.5%.


The historical rank and industry rank for Distribution Solutions Group's Gross Margin % or its related term are showing as below:

DSGR' s Gross Margin % Range Over the Past 10 Years
Min: 25.04   Med: 53.72   Max: 61.31
Current: 35.14


During the past 13 years, the highest Gross Margin % of Distribution Solutions Group was 61.31%. The lowest was 25.04%. And the median was 53.72%.

DSGR's Gross Margin % is ranked better than
77.62% of 143 companies
in the Industrial Distribution industry
Industry Median: 23.42 vs DSGR: 35.14

Distribution Solutions Group had a gross margin of 33.98% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Distribution Solutions Group was -11.50% per year.


Distribution Solutions Group Gross Margin % Historical Data

The historical data trend for Distribution Solutions 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.

* Premium members only.

Distribution Solutions Group Gross Margin % Chart

Distribution Solutions Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 53.23 53.06 25.04 33.95 35.14

Distribution Solutions Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial 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 35.36 38.15 35.99 33.10 33.98

Competitive Comparison of Distribution Solutions Group's Gross Margin %

For the Industrial Distribution subindustry, Distribution Solutions 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.


Distribution Solutions Group's Gross Margin % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Distribution Solutions Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Distribution Solutions Group's Gross Margin % falls into.



Distribution Solutions Group Gross Margin % Calculation

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

Distribution Solutions Group'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 )
=551.9 / 1570.402
=(Revenue - Cost of Goods Sold) / Revenue
=(1570.402 - 1018.527) / 1570.402
=35.14 %

Distribution Solutions Group'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 )
=137.7 / 405.239
=(Revenue - Cost of Goods Sold) / Revenue
=(405.239 - 267.555) / 405.239
=33.98 %

* 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.


Distribution Solutions Group  (NAS:DSGR) 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

Distribution Solutions Group had a gross margin of 33.98% 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.


Distribution Solutions Group Gross Margin % Related Terms

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


Distribution Solutions Group (Distribution Solutions Group) Business Description

Traded in Other Exchanges
Address
8770 W. Bryn Mawr Avenue, Suite 900, Chicago, IL, USA, 60631
Distribution Solutions Group Inc is an industrial distributor of maintenance and repair supplies. It has three operating segments namely Lawson, TestEquity, and Gexpro Services, of which key revenue is derived from the TestEquity segment. The TestEquity segment is a distributor of test and measurement equipment and solutions, electronic production supplies, and tool kits from its leading manufacturer partners supporting the technology, aerospace, defense, automotive, electronics, education, and medical industries.
Executives
Cesar Lanuza officer: President and CEO 8770 W. BYRN MAWR AVE. SUITE 900, C/O LAWSON PRODUCTS, CHICAGO IL 60634
Lkcm Headwater Investments Iv, L.p. 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
Robert Zamarripa director 8770 W. BYRN MAWR AVE. SUITE 900, C/O DISTRIBUTION SOLUTIONS GROUP, INC., CHICAGO IL 60631
Robert R Connors officer: See Remarks POST OFFICE 792, MUNCIE IN 47308-0792
Russ Frazee officer: See Remarks 8770 W. BYRN MAWR AVE. SUITE 900, C/O LAWSON PRODUCTS, CHICAGO IL 60634
King Luther Capital Management Corp 10 percent owner 301 COMMERCE SUITE 1600, FORT WORTH TX 76102
301 Hw Opus Investors, Llc 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
Lkcm Te Investors, Llc 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
Lkcm Headwater Ii Sidecar Partnership, L.p. 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
Lkcm Headwater Investments Iii, L.p. 10 percent owner 301 COMMERCE STREET, SUITE 1600, FORT WORTH TX 76102
David S Lambert officer: VP, Controller and CAO 770 W. BRYN MAWR AVE., SUITE 900, CHICAGO IL 60631
Bianca Rhodes director 8770 W. BRYN MAWR AVE. SUITE 900, C/O LAWSON PRODUCTS, CHICAGO IL 60622
Richard D Pufpaf officer: SVP and General Counsel 8770 W. BRYN MAWR AVE. SUITE 900, CHICAGO IL 60631
Matthew Jay Brown officer: SVP, Sales C/O LAWSON PRODUCTS, INC., 8770 WEST BRYN MAWR AVE, SUITE 900, CHICAGO IL 60631
Shane Mccarthy officer: SVP, Operations C/O LAWSON PRODUCTS, INC., 8770 WEST BRYN MAWR AVENUE, SUITE 900, CHICAGO IL 60631