Metcash (ASX:MTS) Gross Margin % : 12.21% (As of Oct. 2023)

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What is Metcash Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Metcash's Gross Profit for the six months ended in Oct. 2023 was A$957 Mil. Metcash's Revenue for the six months ended in Oct. 2023 was A$7,838 Mil. Therefore, Metcash's Gross Margin % for the quarter that ended in Oct. 2023 was 12.21%.

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

ASX:MTS' s Gross Margin % Range Over the Past 10 Years
Min: 8.34 Med: 9.7 Max: 11.92
Current: 11.92

During the past 13 years, the highest Gross Margin % of Metcash was 11.92%. The lowest was 8.34%. And the median was 9.70%.

ASX:MTS's Gross Margin % is ranked worse than
82.32% of 311 companies
in the Retail - Defensive industry
Industry Median: 22.82 vs ASX:MTS: 11.92

Metcash had a gross margin of 12.21% for the quarter that ended in Oct. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Metcash was 4.80% per year.

Metcash Gross Margin % Historical Data

The historical data trend for Metcash'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.

Metcash Gross Margin % Chart

Metcash Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Gross Margin %

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10.09

10.08

10.35

11.09

11.66

Metcash Semi-Annual Data
	Apr14	Oct14	Apr15	Oct15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
Gross Margin %	Get a 7-Day Free Trial															11.21	10.99	11.69	11.63	12.21

Competitive Comparison of Metcash's Gross Margin %

For the Food Distribution subindustry, Metcash'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.

Metcash's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Metcash's Gross Margin % distribution charts can be found below:

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

Metcash Gross Margin % Calculation

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

Metcash's Gross Margin for the fiscal year that ended in Apr. 2023 is calculated as

Gross Margin % (A: Apr. 2023 )	=	Gross Profit (A: Apr. 2023 )	/	Revenue (A: Apr. 2023 )
	=	1842.3	/	15803.4
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(15803.4 - 13961.1)	/	15803.4
	=	11.66 %

Metcash's Gross Margin for the quarter that ended in Oct. 2023 is calculated as

Gross Margin % (Q: Oct. 2023 )	=	Gross Profit (Q: Oct. 2023 )	/	Revenue (Q: Oct. 2023 )
	=	957.1	/	7837.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7837.7 - 6880.6)	/	7837.7
	=	12.21 %

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.

Metcash (ASX:MTS) 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

Metcash had a gross margin of 12.21% for the quarter that ended in Oct. 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.

Metcash Gross Margin % Related Terms

Thank you for viewing the detailed overview of Metcash's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Metcash (ASX:MTS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Metcash Ltd (ASX:MTS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

MCSHF:USA MG9:Germany

Address

1 Thomas Holt Drive, Macquarie Park, Sydney, NSW, AUS, 2113

Website

https://www.metcash.com

Metcash is a wholesale distribution and marketing company specialising in food, liquor, and hardware. Centralised wholesale distribution enables retailers to gain access to the combined scale of many retailers to negotiate material volume discounts.The food segment distributes of a range of products and services to independent supermarket and convenience stores. The hardware segment distributes hardware products to independent retail outlets and operates company-owned stores. The liquor segment distributes liquor products to independent retailers and pubs.

Metcash (ASX:MTS) Headlines

From GuruFocus

Metcash Stock Is Estimated To Be Modestly Overvalued

By GF Value GF Value • 05-11-2021