Rite Aid's gross profit for the
three
months ended in Aug. 2023 was $1,096 Mil. Rite Aid's gross profit for the trailing twelve months (TTM) ended in Aug. 2023 was $4,727 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Rite Aid's gross profit for the
three
months ended in Aug. 2023 was $1,096 Mil. Rite Aid's Revenue for the
three
months ended in Aug. 2023 was $5,646 Mil. Therefore, Rite Aid's Gross Margin % for the quarter that ended in Aug. 2023 was 19.40%.
Rite Aid had a gross margin of 19.40% for the quarter that ended in Aug. 2023 => No sustainable competitive advantage
During the past 13 years, the highestGross Margin % of Rite Aid was 28.69%. The lowest was 19.57%. And the median was 21.85%.
Warning Sign:
Rite Aid Corp gross margin has been in long-term decline. The average rate of decline per year is -2.1%.
Rite Aid Gross Profit Historical Data
The historical data trend for Rite Aid's Gross Profit 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.
For the Pharmaceutical Retailers subindustry, Rite Aid's Gross Profit, along with its competitors' market caps and Gross Profit 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.
Rite Aid Gross Profit Distribution
For the Healthcare Providers & Services industry and Healthcare sector, Rite Aid's Gross Profit distribution charts can be found below:
* The bar in red indicates where Rite Aid's Gross Profit falls into.
Rite Aid Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Rite Aid's Gross Profit for the fiscal year that ended in Feb. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Aug. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,727 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Rite Aid's Gross Margin % for the quarter that ended in Aug. 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.
Rite Aid (OTCPK:RADCQ) Gross Profit 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
Rite Aid had a gross margin of 19.40% for the quarter that ended in Aug. 2023 => No sustainable competitive advantage
Rite Aid Gross Profit Related Terms
Thank you for viewing the detailed overview of Rite Aid's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Rite Aid Corp is a large retail drugstore chain in the United States. The company reports via two segments: retail pharmacy and pharmacy services. The retail pharmacy segment generates revenue primarily through the sale of prescription drugs, along with an assortment of merchandise that includes over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and numerous other everyday consumables. The pharmacy-services segment relates to EnvisionRx, a fully owned subsidiary that operates as a pharmacy benefit management provider offering a broad range of pharmaceutical services.
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