The historical rank and industry rank for The Middleby's Gross Margin % or its related term are showing as below:
MIDD'
s Gross Margin % Range Over the Past 10 Years
Min: 35.1 Med: 37.65 Max: 39.74
Current: 38
During the past 13 years, the highestGross Margin % of The Middleby was 39.74%. The lowest was 35.10%. And the median was 37.65%.
MIDD's Gross Margin % is ranked better than 77.12% of 2937
companies
in the Industrial Products industry
Industry Median: 26.42
vs MIDD: 38.00
The Middleby had a gross margin of 38.35% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Middleby was 0.20% per year.
The Middleby Gross Margin % Historical Data
The historical data trend for The Middleby'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 The Middleby's Gross Margin %
For the Specialty Industrial Machinery subindustry, The Middleby'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.
The Middleby's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, The Middleby's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Middleby'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.
The Middleby (NAS:MIDD) 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
The Middleby had a gross margin of 38.35% 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.
The Middleby Gross Margin % Related Terms
Thank you for viewing the detailed overview of The Middleby's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
The Middleby Corp is engaged in designing, manufacturing, marketing, distribution and service of a broad line of foodservice equipment used in all types of commercial restaurants and institutional kitchens, food preparation, cooking, baking, chilling and packaging equipment for food processing operations, and premium kitchen equipment including ranges, ovens, refrigerators, ventilation, dishwashers and outdoor cooking equipment primarily used in the residential market. The company conducts its business through three principal business segments namely the Commercial Foodservice Equipment Group, the Food Processing Equipment Group and the Residential Kitchen Equipment Group. The firm derives majority revenue from Commercial Foodservice Equipment Group segment.
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