Switch to:
?>
Oil-Dri Corp of America (NYSE:ODC)
Gross Margin
29.16% (As of Jan. 2016)

Gross Margin is calculated as gross profit divided by its revenue. Oil-Dri Corp of America's gross profit for the three months ended in Jan. 2016 was $19.1 Mil. Oil-Dri Corp of America's revenue for the three months ended in Jan. 2016 was $65.4 Mil. Therefore, Oil-Dri Corp of America's Gross Margin for the quarter that ended in Jan. 2016 was 29.16%.

ODC' s Gross Margin Range Over the Past 10 Years
Min: 18.55   Max: 26.54
Current: 26.86

18.55
26.54

During the past 13 years, the highest Gross Margin of Oil-Dri Corp of America was 26.54%. The lowest was 18.55%. And the median was 22.24%.

ODC's Gross Margin is ranked higher than
59% of the 1049 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 23.46 vs. ODC: 26.86 )

Oil-Dri Corp of America had a gross margin of 29.16% for the quarter that ended in Jan. 2016 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Oil-Dri Corp of America was 0.60% per year.


Definition

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Oil-Dri Corp of America's Gross Margin for the fiscal year that ended in Jul. 2015 is calculated as

Gross Margin (A: Jul. 2015 )=Gross Profit (A: Jul. 2015 ) / Revenue (A: Jul. 2015 )
=60.2 / 261.402
=(Revenue - Cost of Goods Sold) / Revenue
=(261.402 - 201.245) / 261.402
=23.01 %

Oil-Dri Corp of America's Gross Margin for the quarter that ended in Jan. 2016 is calculated as

Gross Margin (Q: Jan. 2016 )=Gross Profit (Q: Jan. 2016 ) / Revenue (Q: Jan. 2016 )
=19.1 / 65.367
=(Revenue - Cost of Goods Sold) / Revenue
=(65.367 - 46.305) / 65.367
=29.16 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.


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

Oil-Dri Corp of America had a gross margin of 29.16% for the quarter that ended in Jan. 2016 => 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.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Oil-Dri Corp of America Annual Data

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
Gross Margin 18.5521.5419.8320.9022.6822.0724.5226.5422.4023.01

Oil-Dri Corp of America Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
Gross Margin 25.9724.3720.5918.7320.8523.5622.1425.5230.4629.16
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK