DAC (Danaos) Gross Margin % : 58.78% (As of Sep. 2024)

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What is Danaos Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Danaos's Gross Profit for the three months ended in Sep. 2024 was $151 Mil. Danaos's Revenue for the three months ended in Sep. 2024 was $256 Mil. Therefore, Danaos's Gross Margin % for the quarter that ended in Sep. 2024 was 58.78%.

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

DAC' s Gross Margin % Range Over the Past 10 Years
Min: 48.02 Med: 52.57 Max: 66.94
Current: 61.46

During the past 13 years, the highest Gross Margin % of Danaos was 66.94%. The lowest was 48.02%. And the median was 52.57%.

DAC's Gross Margin % is ranked better than
93.76% of 946 companies
in the Transportation industry
Industry Median: 19.835 vs DAC: 61.46

Danaos had a gross margin of 58.78% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Danaos was 6.30% per year.

Danaos Gross Margin % Historical Data

The historical data trend for Danaos'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.

Danaos Gross Margin % Chart

Danaos Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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52.91

50.88

59.81

66.94

65.86

Danaos Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Gross Margin %	Get a 7-Day Free Trial															66.23	64.14	61.60	61.37	58.78

Competitive Comparison of Danaos's Gross Margin %

For the Marine Shipping subindustry, Danaos'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.

Danaos's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Danaos's Gross Margin % distribution charts can be found below:

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

Danaos Gross Margin % Calculation

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

Danaos'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 )
	=	641.2	/	973.583
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(973.583 - 332.414)	/	973.583
	=	65.86 %

Danaos's Gross Margin for the quarter that ended in Sep. 2024 is calculated as

Gross Margin % (Q: Sep. 2024 )	=	Gross Profit (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	150.6	/	256.176
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(256.176 - 105.591)	/	256.176
	=	58.78 %

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.

Danaos (NYSE:DAC) 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

Danaos had a gross margin of 58.78% for the quarter that ended in Sep. 2024 => Durable 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.

Danaos Gross Margin % Related Terms

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Danaos Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Danaos Corp (NYSE:DAC) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

DVW1:Germany

Address

c/o Danaos Shipping Co. Ltd, 14 Akti Kondyli, Piraeus, GRC, 185 45

Website

https://www.danaos.com

Danaos Corp is an international owner of containerships. It provides international seaborne transportation services by operating vessels in the containership sector of the shipping industry. The company's customers include, HMM, MSC, Yang Ming, Hapag Lloyd, ZIM, Maersk, COSCO, OOCL, ONE, PIL, Sealead, Niledutch, Samudera, OSC, and Arkas. Geographically, the company operates in Australia-Asia, Europe, and America, with maximum revenue from the Australia-Asia region. It has two reporting segments Container vessels and Drybulk vessels segment. It generates the majority of its revenue from Container vessels.