Procter & Gamble Co (Procter & Gamble Co) Gross Margin %

Procter & Gamble Co Annual Data
	Trend	Jun14	Jun15	Jun16	Jun17	Jun18	Jun19	Jun20	Jun21	Jun22	Jun23
Gross Margin %							48.63	50.32	51.25	47.43	47.86

Procter & Gamble Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																47.54	48.16	48.36	51.99	52.69

For the Household & Personal Products subindustry, Procter & Gamble Co'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.

For the Consumer Packaged Goods industry and Consumer Defensive sector, Procter & Gamble Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Procter & Gamble Co's Gross Margin % falls into.

Procter & Gamble Co Gross Margin % Calculation

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

Procter & Gamble Co's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Procter & Gamble Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

* 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.

Procter & Gamble Co  (NYSE:PG) 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

Procter & Gamble Co had a gross margin of 52.69% for the quarter that ended in Dec. 2023 => 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.

Procter & Gamble Co Gross Margin % Related Terms

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Procter & Gamble Co (Procter & Gamble Co) Business Description