Lithium Australia (ASX:LIT) Gross Margin % : 8.70% (As of Dec. 2023)

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What is Lithium Australia Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lithium Australia's Gross Profit for the six months ended in Dec. 2023 was A$0.23 Mil. Lithium Australia's Revenue for the six months ended in Dec. 2023 was A$2.59 Mil. Therefore, Lithium Australia's Gross Margin % for the quarter that ended in Dec. 2023 was 8.70%.

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

ASX:LIT' s Gross Margin % Range Over the Past 10 Years
Min: -59.01 Med: -25 Max: 26.45
Current: 18.65

During the past 13 years, the highest Gross Margin % of Lithium Australia was 26.45%. The lowest was -59.01%. And the median was -25.00%.

ASX:LIT's Gross Margin % is ranked worse than
51.35% of 703 companies
in the Metals & Mining industry
Industry Median: 19.17 vs ASX:LIT: 18.65

Lithium Australia had a gross margin of 8.70% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lithium Australia was 0.00% per year.

Lithium Australia Gross Margin % Historical Data

The historical data trend for Lithium Australia'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.

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Lithium Australia Gross Margin % Chart

Lithium Australia Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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7.75

-59.01

-57.74

26.45

Lithium Australia Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															-142.62	-11.50	26.00	26.78	8.70

Competitive Comparison of Lithium Australia's Gross Margin %

For the Other Industrial Metals & Mining subindustry, Lithium Australia'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.

Lithium Australia's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Lithium Australia's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lithium Australia's Gross Margin % falls into.

Lithium Australia Gross Margin % Calculation

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

Lithium Australia's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	1.5	/	5.489
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5.489 - 4.037)	/	5.489
	=	26.45 %

Lithium Australia'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 )
	=	0.2	/	2.585
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2.585 - 2.36)	/	2.585
	=	8.70 %

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.

Lithium Australia (ASX:LIT) 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

Lithium Australia had a gross margin of 8.70% for the quarter that ended in Dec. 2023 => No sustainable 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.

Lithium Australia Gross Margin % Related Terms

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Lithium Australia (ASX:LIT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Lithium Australia Ltd (ASX:LIT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

LMMFF:USA 3MW:Germany

Address

677 Murray Street, Level 1, Perth, WA, AUS, 6005

Website

https://www.lithium-au.com

Lithium Australia Ltd is engaged in the acquisition, mineral exploration, and process development, for the extraction and recovery of lithium. Its reportable segment includes Battery Recycling, Battery Materials, Chemicals, and Raw Materials. The majority of its revenue derives from the Battery Recycling segment which includes research and development of processing technology for mixed-battery recycling, as well as the sale of recovered energy metals.