Gross Margin % is calculated as gross profit divided by its revenue. LSB Industries's Gross Profit for the
three
months ended in Dec. 2023 was $12.0 Mil. LSB Industries's Revenue for the
three
months ended in Dec. 2023 was $132.6 Mil. Therefore, LSB Industries's Gross Margin % for the quarter that ended in Dec. 2023 was 9.06%.
The historical rank and industry rank for LSB Industries's Gross Margin % or its related term are showing as below:
LXU'
s Gross Margin % Range Over the Past 10 Years
Min: -13.16 Med: 4.72 Max: 38.63
Current: 14.53
During the past 13 years, the highestGross Margin % of LSB Industries was 38.63%. The lowest was -13.16%. And the median was 4.72%.
LXU's Gross Margin % is ranked worse than 72.91% of 1510
companies
in the Chemicals industry
Industry Median: 22.315
vs LXU: 14.53
LSB Industries had a gross margin of 9.06% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for LSB Industries was 66.70% per year.
LSB Industries Gross Margin % Historical Data
The historical data trend for LSB Industries'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.
For the Chemicals subindustry, LSB Industries'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.
LSB Industries Gross Margin % Distribution
For the Chemicals industry and Basic Materials sector, LSB Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LSB Industries'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.
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
LSB Industries had a gross margin of 9.06% for the quarter that ended in Dec. 2023 => 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.
LSB Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of LSB Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
LSB Industries (LSB Industries) Business Description
LSB Industries Inc is engaged in the manufacturing and sale of chemical products in the United States. The company manufactures and sells chemical products for the agricultural, industrial, and mining markets. Its products include ammonia, fertilizer grade ammonium nitrate (AN and HDAN), and urea ammonia nitrate (UAN) for agricultural applications; high purity and commercial grade ammonia, sulfuric acids, concentrated, blended, and regular nitric acid, mixed nitrating acids, carbon dioxide, and diesel exhaust fluid for industrial applications; and industrial grade AN (LDAN) and AN solutions for mining applications. Its products are sold through distributors and directly to end customers throughout the United States.
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