Gross Margin % is calculated as gross profit divided by its revenue. Mercer International's Gross Profit for the
three
months ended in Dec. 2023 was $4 Mil. Mercer International's Revenue for the
three
months ended in Dec. 2023 was $470 Mil. Therefore, Mercer International's Gross Margin % for the quarter that ended in Dec. 2023 was 0.87%.
The historical rank and industry rank for Mercer International's Gross Margin % or its related term are showing as below:
MERC'
s Gross Margin % Range Over the Past 10 Years
Min: -1.6 Med: 18.26 Max: 23.6
Current: -1.6
During the past 13 years, the highestGross Margin % of Mercer International was 23.60%. The lowest was -1.60%. And the median was 18.26%.
MERC's Gross Margin % is ranked worse than 94.35% of 283
companies
in the Forest Products industry
Industry Median: 19.84
vs MERC: -1.60
Mercer International had a gross margin of 0.87% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Mercer International was 0.00% per year.
Mercer International Gross Margin % Historical Data
The historical data trend for Mercer International'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 Mercer International's Gross Margin %
For the Paper & Paper Products subindustry, Mercer International'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.
Mercer International's Gross Margin % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Mercer International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mercer International'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.
Mercer International (NAS:MERC) 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
Mercer International had a gross margin of 0.87% 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.
Mercer International Gross Margin % Related Terms
Thank you for viewing the detailed overview of Mercer International's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mercer International (Mercer International) Business Description
Mercer International Inc is a forest products company with two reportable operating segments in pulp and solid wood. Pulp segment consists of the manufacture, sale and distribution of pulp, electricity and chemicals. Solid wood segment consists of the manufacture, sale and distribution of lumber, manufactured products wood pallets, electricity, biofuels and wood residuals from sawmills and other facilities located in Germany and the United States. The company has its geographical presence in USA, Germany, China and Other countries. Majority of the revenue is generated from the Pulp segment.
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