Gross Margin % is calculated as gross profit divided by its revenue. Meredith's Gross Profit for the
three
months ended in Sep. 2021 was $442 Mil. Meredith's Revenue for the
three
months ended in Sep. 2021 was $709 Mil. Therefore, Meredith's Gross Margin % for the quarter that ended in Sep. 2021 was 62.40%.
The historical rank and industry rank for Meredith's Gross Margin % or its related term are showing as below:
MDP'
s Gross Margin % Range Over the Past 10 Years
Min: 60.23 Med: 62.69 Max: 65.59
Current: 64.92
During the past 13 years, the highestGross Margin % of Meredith was 65.59%. The lowest was 60.23%. And the median was 62.69%.
MDP's Gross Margin % is not ranked
in the Media - Diversified industry.
Industry Median: 38.52
vs MDP: 64.92
Meredith had a gross margin of 62.40% for the quarter that ended in Sep. 2021 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Meredith was 0.50% per year.
Meredith Gross Margin % Historical Data
The historical data trend for Meredith'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 Meredith's Gross Margin %
For the Publishing subindustry, Meredith'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.
Meredith's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Meredith's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Meredith'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.
Meredith (NYSE:MDP) 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
Meredith had a gross margin of 62.40% for the quarter that ended in Sep. 2021 => Durable 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.
Meredith Gross Margin % Related Terms
Thank you for viewing the detailed overview of Meredith's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Meredith Corp is an American media company that focuses on publications and marketing services around the home, family, food, and lifestyle markets. The company operates two divisions: national media and local media. The national media segment publishes magazines such as Every Day with Rachael Ray, Better Homes and Gardens, Family Fun, and Parents; this segment is the source of the majority of Meredith's revenue. The local media segment owns over 15 television stations around the United States. In 2014, the company announced a 10-year licensing agreement with Martha Stewart Omnimedia to acquire the rights to Martha Stewart Living, Martha Stewart Weddings, and marthastewart.com.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MDP has been successfully added to your 