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Mecanica Ceahlau (BSE:MECF) Gross Margin % : 38.52% (As of Mar. 2024)


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What is Mecanica Ceahlau Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Mecanica Ceahlau's Gross Profit for the three months ended in Mar. 2024 was lei2.42 Mil. Mecanica Ceahlau's Revenue for the three months ended in Mar. 2024 was lei6.29 Mil. Therefore, Mecanica Ceahlau's Gross Margin % for the quarter that ended in Mar. 2024 was 38.52%.

Warning Sign:

Mecanica Ceahlau gross margin has been in long-term decline. The average rate of decline per year is -3.1%.


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

BSE:MECF' s Gross Margin % Range Over the Past 10 Years
Min: 29.46   Med: 40.84   Max: 66.87
Current: 41.03


During the past 13 years, the highest Gross Margin % of Mecanica Ceahlau was 66.87%. The lowest was 29.46%. And the median was 40.84%.

BSE:MECF's Gross Margin % is ranked better than
90.73% of 205 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 23.95 vs BSE:MECF: 41.03

Mecanica Ceahlau had a gross margin of 38.52% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Mecanica Ceahlau was -3.10% per year.


Mecanica Ceahlau Gross Margin % Historical Data

The historical data trend for Mecanica Ceahlau'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.

Mecanica Ceahlau Gross Margin % Chart

Mecanica Ceahlau Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.00 40.26 29.46 32.31 41.41

Mecanica Ceahlau Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.52 42.89 40.69 41.48 38.52

Competitive Comparison of Mecanica Ceahlau's Gross Margin %

For the Farm & Heavy Construction Machinery subindustry, Mecanica Ceahlau'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.


Mecanica Ceahlau's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Mecanica Ceahlau's Gross Margin % distribution charts can be found below:

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



Mecanica Ceahlau Gross Margin % Calculation

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

Mecanica Ceahlau's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=11.9 / 28.753
=(Revenue - Cost of Goods Sold) / Revenue
=(28.753 - 16.846) / 28.753
=41.41 %

Mecanica Ceahlau's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=2.4 / 6.293
=(Revenue - Cost of Goods Sold) / Revenue
=(6.293 - 3.869) / 6.293
=38.52 %

* 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.


Mecanica Ceahlau  (BSE:MECF) 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

Mecanica Ceahlau had a gross margin of 38.52% 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.


Mecanica Ceahlau Gross Margin % Related Terms

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Mecanica Ceahlau (BSE:MECF) Business Description

Traded in Other Exchanges
N/A
Address
Dumbravei Street, nr. 6, Neamt County, Piatra Neamt, ROU, 610202
Mecanica Ceahlau is engaged in manufacturing of agricultural machinery. Its products include CF 5, CF 7, CF 9, CFM 7, CFM 9, CSC 00B/5, CSC 00B/7, CSC 00B/9, FB 1600, as well as agricultural trailers with a capacity of 4 to 20 tons.

Mecanica Ceahlau (BSE:MECF) Headlines

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