Ag Growth International (Ag Growth International) Gross Margin % : 31.20% (As of Dec. 2023)

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What is Ag Growth International Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ag Growth International's Gross Profit for the three months ended in Dec. 2023 was $88 Mil. Ag Growth International's Revenue for the three months ended in Dec. 2023 was $283 Mil. Therefore, Ag Growth International's Gross Margin % for the quarter that ended in Dec. 2023 was 31.20%.

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

AGGZF' s Gross Margin % Range Over the Past 10 Years
Min: 21.28 Med: 28.82 Max: 31.38
Current: 31.38

During the past 13 years, the highest Gross Margin % of Ag Growth International was 31.38%. The lowest was 21.28%. And the median was 28.82%.

AGGZF's Gross Margin % is ranked better than
76.59% of 205 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 24.35 vs AGGZF: 31.38

Ag Growth International had a gross margin of 31.20% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Ag Growth International was 2.40% per year.

Ag Growth International Gross Margin % Historical Data

The historical data trend for Ag Growth International'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.

Ag Growth International Gross Margin % Chart

Ag Growth International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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26.89

21.28

25.37

28.85

31.38

Ag Growth International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															27.00	30.67	30.23	33.26	31.20

Competitive Comparison of Ag Growth International's Gross Margin %

For the Farm & Heavy Construction Machinery subindustry, Ag Growth International'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.

Ag Growth International's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Ag Growth International's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ag Growth International's Gross Margin % falls into.

Ag Growth International Gross Margin % Calculation

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

Ag Growth International'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 )
	=	357.1	/	1137.946
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1137.946 - 780.814)	/	1137.946
	=	31.38 %

Ag Growth International'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 )
	=	88.2	/	282.735
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(282.735 - 194.517)	/	282.735
	=	31.20 %

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.

Ag Growth International (OTCPK:AGGZF) 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

Ag Growth International had a gross margin of 31.20% 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.

Ag Growth International Gross Margin % Related Terms

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Ag Growth International (Ag Growth International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Ag Growth International Inc (OTCPK:AGGZF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

7AG:Germany AFN:Canada

Address

198 Commerce Drive, Winnipeg, MB, CAN, R3P 0Z6

Website

https://www.aggrowth.com

Ag Growth International Inc manufactures portable and stationary grain handling, storage, and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment, and grain drying systems. The company operates mainly in Portable handling, permanent handling, storage and conditioning, livestock, and manufacturing sectors. It has two reportable segment farm and commercial. Some of its brands are batco, wheatheart, westfield, storm, rem, hi roller, union iron, hsi, tramco, ptm, vis, nuvision. It has manufacturing facilities in Canada, the United States, Italy, Brazil, France, United Kingdom, and India. Its geographical segments are Canada, United States, and the International.