Oriental Aromatics Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.8%.
The historical rank and industry rank for Oriental Aromatics's Gross Margin % or its related term are showing as below:
BOM:500078'
s Gross Margin % Range Over the Past 10 Years
Min: 17.02 Med: 23.47 Max: 33.08
Current: 17.02
During the past 13 years, the highestGross Margin % of Oriental Aromatics was 33.08%. The lowest was 17.02%. And the median was 23.47%.
BOM:500078's Gross Margin % is ranked worse than 65.01% of 1509
companies
in the Chemicals industry
Industry Median: 22.25
vs BOM:500078: 17.02
Oriental Aromatics had a gross margin of 20.23% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Oriental Aromatics was -3.80% per year.
Oriental Aromatics Gross Margin % Historical Data
The historical data trend for Oriental Aromatics'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 Oriental Aromatics's Gross Margin %
For the Specialty Chemicals subindustry, Oriental Aromatics'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.
Oriental Aromatics's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Oriental Aromatics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Oriental Aromatics'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.
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
Oriental Aromatics had a gross margin of 20.23% 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.
Oriental Aromatics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Oriental Aromatics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Oriental Aromatics (BOM:500078) Business Description
Oriental Aromatics Ltd is Indian based company engaged in the business of manufacture of fine chemicals along with its principal products and services include Perfumery Chemicals, and Camphor and Isoborneol. The organization is also holds manufacturing and selling of camphor, terpineols, resins, aromatic and terpene chemicals, fragrance chemicals and fragrance chemical intermediaries. The firm offers a range of products, which consists of synthetic camphor, terpineols, pine oils, resins, astromusk, perfumery chemicals and specialty chemicals. The primary segment of the company is in the business of manufacture of fine chemicals. It operates in two geographical segments: Domestic and Export. The company made majority of its revenue within operations in India.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOM:500078 has been successfully added to your 