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IVFH (Innovative Food Holdings) Gross Margin % : 25.19% (As of Sep. 2024)


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What is Innovative Food Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Innovative Food Holdings's Gross Profit for the three months ended in Sep. 2024 was $4.28 Mil. Innovative Food Holdings's Revenue for the three months ended in Sep. 2024 was $17.01 Mil. Therefore, Innovative Food Holdings's Gross Margin % for the quarter that ended in Sep. 2024 was 25.19%.

Warning Sign:

Innovative Food Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -5.2%.


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

IVFH' s Gross Margin % Range Over the Past 10 Years
Min: 22.21   Med: 29.37   Max: 33.04
Current: 24.2


During the past 13 years, the highest Gross Margin % of Innovative Food Holdings was 33.04%. The lowest was 22.21%. And the median was 29.37%.

IVFH's Gross Margin % is ranked better than
54.63% of 313 companies
in the Retail - Defensive industry
Industry Median: 23.21 vs IVFH: 24.20

Innovative Food Holdings had a gross margin of 25.19% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Innovative Food Holdings was -5.20% per year.


Innovative Food Holdings Gross Margin % Historical Data

The historical data trend for Innovative Food Holdings'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.

Innovative Food Holdings Gross Margin % Chart

Innovative Food Holdings 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 28.75 26.74 27.25 22.21 24.27

Innovative Food Holdings 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 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 26.77 23.55 24.37 23.81 25.19

Competitive Comparison of Innovative Food Holdings's Gross Margin %

For the Food Distribution subindustry, Innovative Food Holdings'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.


Innovative Food Holdings's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Innovative Food Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Innovative Food Holdings's Gross Margin % falls into.



Innovative Food Holdings Gross Margin % Calculation

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

Innovative Food Holdings'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 )
=17.5 / 72.219
=(Revenue - Cost of Goods Sold) / Revenue
=(72.219 - 54.693) / 72.219
=24.27 %

Innovative Food Holdings'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 )
=4.3 / 17.01
=(Revenue - Cost of Goods Sold) / Revenue
=(17.01 - 12.726) / 17.01
=25.19 %

* 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.


Innovative Food Holdings  (OTCPK:IVFH) 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

Innovative Food Holdings had a gross margin of 25.19% for the quarter that ended in Sep. 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.


Innovative Food Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Innovative Food Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Innovative Food Holdings Business Description

Traded in Other Exchanges
N/A
Address
9696 Bonita Beach Road, Suite 208, Bonita Springs, FL, USA, 34135
Innovative Food Holdings Inc through its subsidiaries is engaged in the distribution of perishables and specialty food products. Its customers include restaurants, hotels, country clubs, national chain accounts, casinos, hospitals, and catering houses. The company distributes perishable and specialty food and food-related products, including origin-specific seafood, domestic and imported meats, exotic game and poultry, artisanal cheeses, freshly prepared meals, caviar, wild and cultivated mushrooms, micro-greens, organic farmed and manufactured food products, estate-bottled olive oils and aged vinegar. The company also drop ship specialty foods to Professional Chefs nationally through the websites of broadline distributors, such as US Foods, Inc.
Executives
Denver Johnson Smith director 350 S RACE STREET, DENVER CO 80209
Samuel Klepfish director, officer: CEO 231 NORMAN AVENUE, BROOKLYN NY 11222
Brady Smallwood director, officer: Chief Operating Officer 4505 NE BIRCHGROVE PL, BENTONVILLE AR 72712
Robert William Bennett director, officer: Chief Executive Officer 28411 RACETRACK RD, BONITA SPRINGS FL 34135
Hank Cohn director 14 CHARLOTTE DRIVE, WESLEY HILLS NY 10977
Jefferson Gramm director C/O BANDERA PARTNERS LLC, 50 BROAD STREET, SUITE 1820, NEW YORK NY 10004
James C Pappas 10 percent owner 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Richard Tang officer: Chief Financial Officer C/O INNOVATIVE FOOD HOLDINGS, INC., 28411 RACETRACK RD, BONITA SPRINGS FL 34135
David Polinsky director 90 BOOTH AVENUE, ENGLEWOOD NJ 07631
Jcp Investment Management, Llc 10 percent owner 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Mark Schmulen 10 percent owner, other: See Explanation of Responses 11 GREENWAY PLAZA, SUITE 2400, HOUSTON TX 77046
Loukas D. Kozonis 10 percent owner, other: See Explanation of Responses 4849 N. MILWAUKEE AVENUE, SUITE 300, CHICAGO IL 60630
Jcp Investment Holdings, Llc 10 percent owner 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partners, Lp 10 percent owner 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027
Jcp Investment Partnership, Lp 10 percent owner 1177 WEST LOOP SOUTH, SUITE 1320, HOUSTON TX 77027