The historical rank and industry rank for Acme United's Gross Margin % or its related term are showing as below:
ACU'
s Gross Margin % Range Over the Past 10 Years
Min: 32.77 Med: 36.42 Max: 38.47
Current: 38.47
During the past 13 years, the highestGross Margin % of Acme United was 38.47%. The lowest was 32.77%. And the median was 36.42%.
ACU's Gross Margin % is ranked better than 75.87% of 1807
companies
in the Consumer Packaged Goods industry
Industry Median: 25.03
vs ACU: 38.47
Acme United had a gross margin of 39.11% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Acme United was -0.70% per year.
Acme United Gross Margin % Historical Data
The historical data trend for Acme United'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 Acme United's Gross Margin %
For the Household & Personal Products subindustry, Acme United'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.
Acme United's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Acme United's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Acme United'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.
Acme United (AMEX:ACU) 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
Acme United had a gross margin of 39.11% 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.
Acme United Gross Margin % Related Terms
Thank you for viewing the detailed overview of Acme United's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Acme United Corp is a supplier of first aid and medical products and cutting technology to the school, home, office, hardware, sporting goods, and industrial markets. Its principal products sold across all segments are first aid kits and medical products, scissors, shears, knives, rulers, pencil sharpeners, and sharpening tools. The Company sells its products to mass market and e-commerce retailers, industrial distributors, wholesale, contract, and retail stationery distributors, office supply superstores, sporting goods stores, and hardware chains. The Company's reportable business segments consist of the United States, Canada, and Europe, out of which a majority of the company's revenue is derived from the United States.
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