Gross Margin % is calculated as gross profit divided by its revenue. Lindsay's Gross Profit for the
three
months ended in Feb. 2024 was $49.0 Mil. Lindsay's Revenue for the
three
months ended in Feb. 2024 was $151.5 Mil. Therefore, Lindsay's Gross Margin % for the quarter that ended in Feb. 2024 was 32.31%.
The historical rank and industry rank for Lindsay's Gross Margin % or its related term are showing as below:
LNN'
s Gross Margin % Range Over the Past 10 Years
Min: 25.81 Med: 27.79 Max: 32.14
Current: 31.74
During the past 13 years, the highestGross Margin % of Lindsay was 32.14%. The lowest was 25.81%. And the median was 27.79%.
LNN's Gross Margin % is ranked better than 77.56% of 205
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 24.22
vs LNN: 31.74
Lindsay had a gross margin of 32.31% for the quarter that ended in Feb. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lindsay was 1.40% per year.
Lindsay Gross Margin % Historical Data
The historical data trend for Lindsay'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 Lindsay's Gross Margin %
For the Farm & Heavy Construction Machinery subindustry, Lindsay'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.
Lindsay's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Lindsay's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lindsay'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.
Lindsay (NYSE:LNN) 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
Lindsay had a gross margin of 32.31% for the quarter that ended in Feb. 2024 => 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.
Lindsay Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lindsay's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lindsay Corp provides various proprietary water management and road infrastructure products and services. It has operations categorized into two main reporting segments: Irrigation, and Infrastructure. The company generates maximum revenue from the Irrigation segment. Its Irrigation segment includes manufacturing and marketing center pivot, lateral move, and hose reel irrigation systems, as well as various technology solutions such as GPS positioning and guidance, variable rate irrigation, wireless irrigation management, M2M communication technology, and smartphone applications. Geographically, it derives a majority of its revenue from the United States.
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