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TPCO Holding (TPCO Holding) Gross Margin % : 43.10% (As of Mar. 2023)


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What is TPCO Holding Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. TPCO Holding's Gross Profit for the three months ended in Mar. 2023 was $7.78 Mil. TPCO Holding's Revenue for the three months ended in Mar. 2023 was $18.05 Mil. Therefore, TPCO Holding's Gross Margin % for the quarter that ended in Mar. 2023 was 43.10%.


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

GRMWF' s Gross Margin % Range Over the Past 10 Years
Min: 16.29   Med: 23.7   Max: 32.48
Current: 32.48


During the past 4 years, the highest Gross Margin % of TPCO Holding was 32.48%. The lowest was 16.29%. And the median was 23.70%.

GRMWF's Gross Margin % is not ranked
in the Drug Manufacturers industry.
Industry Median: 46.24 vs GRMWF: 32.48

TPCO Holding had a gross margin of 43.10% for the quarter that ended in Mar. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for TPCO Holding was 0.00% per year.


TPCO Holding Gross Margin % Historical Data

The historical data trend for TPCO Holding'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.

TPCO Holding Gross Margin % Chart

TPCO Holding Annual Data
Trend Dec19 Dec20 Dec21 Dec22
Gross Margin %
- - 16.29 31.10

TPCO Holding Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 29.93 23.92 33.83 33.32 43.10

Competitive Comparison of TPCO Holding's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, TPCO Holding'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.


TPCO Holding's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, TPCO Holding's Gross Margin % distribution charts can be found below:

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



TPCO Holding Gross Margin % Calculation

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

TPCO Holding's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=26 / 83.637
=(Revenue - Cost of Goods Sold) / Revenue
=(83.637 - 57.627) / 83.637
=31.10 %

TPCO Holding's Gross Margin for the quarter that ended in Mar. 2023 is calculated as


Gross Margin % (Q: Mar. 2023 )=Gross Profit (Q: Mar. 2023 ) / Revenue (Q: Mar. 2023 )
=7.8 / 18.054
=(Revenue - Cost of Goods Sold) / Revenue
=(18.054 - 10.273) / 18.054
=43.10 %

* 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.


TPCO Holding  (OTCPK:GRMWF) 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

TPCO Holding had a gross margin of 43.10% for the quarter that ended in Mar. 2023 => 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.


TPCO Holding Gross Margin % Related Terms

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TPCO Holding (TPCO Holding) Business Description

Traded in Other Exchanges
N/A
Address
1550 Leigh Avenue, San Jose, CA, USA, 95125
TPCO Holding Corp is a consumer-focused cannabis company based in the United States focused on the recreational and wellness markets. Its operational footprint spans cultivation, extraction, manufacturing, distribution, brands, retail and delivery. The company's sales channels include Direct Consumer and Wholesale, of which key revenue is derived from the Wholesale channel which includes the company selling first-party and selected third-party products into 450 dispensaries across California. Additional wholesale revenue comes from sales of sourced bulk flowers and oil produced in-house. It has one segment engaged in the cultivation, manufacturing, distribution and sale of cannabis within the State of California.