Gross Margin % is calculated as gross profit divided by its revenue. Blue Bird's Gross Profit for the
three
months ended in Dec. 2023 was $64 Mil. Blue Bird's Revenue for the
three
months ended in Dec. 2023 was $318 Mil. Therefore, Blue Bird's Gross Margin % for the quarter that ended in Dec. 2023 was 20.01%.
Warning Sign:
Blue Bird Corp gross margin has been in long-term decline. The average rate of decline per year is -8.4%.
The historical rank and industry rank for Blue Bird's Gross Margin % or its related term are showing as below:
BLBD'
s Gross Margin % Range Over the Past 10 Years
Min: 4.56 Med: 12.26 Max: 16.05
Current: 16.05
During the past 11 years, the highestGross Margin % of Blue Bird was 16.05%. The lowest was 4.56%. And the median was 12.26%.
BLBD's Gross Margin % is ranked worse than 61.7% of 1269
companies
in the Vehicles & Parts industry
Industry Median: 19.37
vs BLBD: 16.05
Blue Bird had a gross margin of 20.01% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Blue Bird was -8.40% per year.
Blue Bird Gross Margin % Historical Data
The historical data trend for Blue Bird'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 Blue Bird's Gross Margin %
For the Auto Manufacturers subindustry, Blue Bird'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.
Blue Bird's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Blue Bird's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Blue Bird'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.
Blue Bird (NAS:BLBD) 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
Blue Bird had a gross margin of 20.01% 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.
Blue Bird Gross Margin % Related Terms
Thank you for viewing the detailed overview of Blue Bird's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Blue Bird Corp is an American bus manufacturing company. It has its operations in two segments. The Bus segment involves the design, engineering, manufacture and sales of school buses and extended warranties; and the Parts segment which includes the sales of replacement bus parts. It carries its operations in the United States, Canada, and the rest of the world. The majority of its sales are derived from the United States through its bus manufacturing business.
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