The historical rank and industry rank for Aarti Surfactants's Gross Margin % or its related term are showing as below:
BOM:543210'
s Gross Margin % Range Over the Past 10 Years
Min: 6.59 Med: 14.97 Max: 24.3
Current: 24.3
During the past 6 years, the highestGross Margin % of Aarti Surfactants was 24.30%. The lowest was 6.59%. And the median was 14.97%.
BOM:543210's Gross Margin % is ranked better than 54.74% of 1507
companies
in the Chemicals industry
Industry Median: 22.7
vs BOM:543210: 24.30
Aarti Surfactants had a gross margin of 22.86% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Aarti Surfactants was 25.60% per year.
Aarti Surfactants Gross Margin % Historical Data
The historical data trend for Aarti Surfactants'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 Aarti Surfactants's Gross Margin %
For the Specialty Chemicals subindustry, Aarti Surfactants'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.
Aarti Surfactants's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Aarti Surfactants's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aarti Surfactants'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
Aarti Surfactants had a gross margin of 22.86% for the quarter that ended in Mar. 2024 => 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.
Aarti Surfactants Gross Margin % Related Terms
Thank you for viewing the detailed overview of Aarti Surfactants's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Aarti Surfactants (BOM:543210) Business Description
Aarti Surfactants Ltd is the producer of ionic and non-ionic surfactants and specialty products, serving Home and Personal Care, Industrial Applications, and the Agro and Oil industries. The company's product portfolio includes Surfactants, Mild surfactants, Rheology modifiers, Pearlising agents, UV filters, Syndet and soap bases, and Active ingredients, as well as conditioning agents, blends, proteins, and quats. Geographically the group has a business presence in India and Outside India, of which a majority of its revenue is derived from India. The products of the group have application in consumer-centric personal care and home care products, including, inter alia, skin care, oral care, hair care, cosmetics, toiletries and detergent products.
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