Douglas Dynamics (Douglas Dynamics) Gross Margin %

: 21.98% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Douglas Dynamics's Gross Profit for the three months ended in Dec. 2023 was $29.5 Mil. Douglas Dynamics's Revenue for the three months ended in Dec. 2023 was $134.2 Mil. Therefore, Douglas Dynamics's Gross Margin % for the quarter that ended in Dec. 2023 was 21.98%.

Warning Sign:

Douglas Dynamics Inc gross margin has been in long-term decline. The average rate of decline per year is -4.7%.

The historical rank and industry rank for Douglas Dynamics's Gross Margin % or its related term are showing as below:

PLOW' s Gross Margin % Range Over the Past 10 Years
Min: 23.63 Med: 29.55 Max: 38.33
Current: 23.63

During the past 13 years, the highest Gross Margin % of Douglas Dynamics was 38.33%. The lowest was 23.63%. And the median was 29.55%.

PLOW's Gross Margin % is ranked better than
63.78% of 1270 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs PLOW: 23.63

Douglas Dynamics had a gross margin of 21.98% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Douglas Dynamics was -4.70% per year.

Douglas Dynamics Gross Margin % Historical Data

The historical data trend for Douglas Dynamics'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.

* Premium members only.

Douglas Dynamics Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

29.53

26.72

26.20

24.58

23.63

Douglas Dynamics Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																23.71	13.66	29.61	22.29	21.98

Competitive Comparison

For the Auto Parts subindustry, Douglas Dynamics'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.

Douglas Dynamics Gross Margin % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Douglas Dynamics's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Douglas Dynamics's Gross Margin % falls into.

Douglas Dynamics Gross Margin % Calculation

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

Douglas Dynamics's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	134.3	/	568.178
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(568.178 - 433.908)	/	568.178
	=	23.63 %

Douglas Dynamics's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	29.5	/	134.245
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(134.245 - 104.742)	/	134.245
	=	21.98 %

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.

Douglas Dynamics (NYSE:PLOW) 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

Douglas Dynamics had a gross margin of 21.98% 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.

Douglas Dynamics Gross Margin % Related Terms

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Douglas Dynamics (Douglas Dynamics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Douglas Dynamics Inc (NYSE:PLOW) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

5D4:Germany

Address

11270 W Park Place, Suite 300, Milwaukee, WI, USA, 53224

Website

https://www.douglasdynamics.com

Douglas Dynamics Inc is a manufacturer and upfitter of commercial vehicle attachments and equipment. The Company's portfolio includes snow and ice management attachments sold under the BLIZZARD, FISHER, HENDERSON, SNOWEX and WESTERN brands, turf care equipment under the TURFEX brand and industrial maintenance equipment under the SWEEPEX brand. The Company's portfolio also includes the upfit of attachments and storage solutions under the HENDERSON brand, and the DEJANA brand and its related sub-brands. The Company also leases fifteen manufacturing and upfit and service facilities located in Iowa, Maryland, Missouri, New Jersey, New York, Ohio, Pennsylvania, and Rhode Island. The Company conducts business in two segments: Work Truck Attachments and Work Truck Solutions.

Executives

Robert L Mccormick	officer: President and CEO	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
James L Janik	director	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
Genderen Mark Van	officer: President - Work Truck Attm.	C/O DOUGLAS DYNAMICS, INC., 11270 W. PARK PLACE, SUITE 300, MILWAUKEE WI 53224
Linda R Evans	officer: VP of Human Resources	7777 N 73RD STREET, MILWAUKEE WI 53223
Jon J Sisulak	officer: Controller	7777 N 73RD STREET, MILWAUKEE WI 53223
Sarah C Lauber	officer: CFO and Secretary	833 EAST MICHIGAN STREET, SUITE 900, MILWAUKEE WI 53202
Joher Akolawala	director	11270 W. PARK PLACE, SUITE 300, MILWAUKEE WI 53224
Keith Hagelin	officer: VP, Operations	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
Jonathon P. Sievert	officer: President - Henderson Products	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53223
Lisa R Bacus	director	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Y, PHILADELPHIA PA 19192
Andrew Dejana	officer: * See Remarks below	C/O DOUGLAS DYNAMICS, INC., 777 NORTH 73RD STREET, MILWAUKEE WI 53223
Robert J Young	officer: Controller	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
Mark Adamson	officer: VP, Sales and Marketing	C/O DOUGLAS DYNAMICS, INC., 7777 NORTH 73RD STREET, MILWAUKEE WI 53233
Michael W Wickham	director	C/O ROADWAY CORP, 1077 GORGE BLVD, AKRON OH 44310
Margaret S Dano	director	FLEETWOOD ENTERPRISES INC, 3125 MYERS STREET PO BOX 7638, RIVERSIDE CA 92513-7638