KushCo Holdings (KushCo Holdings) Gross Margin % : 15.43% (As of May. 2021)

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What is KushCo Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. KushCo Holdings's Gross Profit for the three months ended in May. 2021 was $4.4 Mil. KushCo Holdings's Revenue for the three months ended in May. 2021 was $28.3 Mil. Therefore, KushCo Holdings's Gross Margin % for the quarter that ended in May. 2021 was 15.43%.

Warning Sign:

KushCo Holdings Inc gross margin has been in long term decline. The average rate of decline per year is -26.6%.

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

KSHB' s Gross Margin % Range Over the Past 10 Years
Min: 6.65 Med: 32.61 Max: 42.28
Current: 20.44

During the past 7 years, the highest Gross Margin % of KushCo Holdings was 42.28%. The lowest was 6.65%. And the median was 32.61%.

KSHB's Gross Margin % is not ranked
in the Packaging & Containers industry.
Industry Median: 21.63 vs KSHB: 20.44

KushCo Holdings had a gross margin of 15.43% for the quarter that ended in May. 2021 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for KushCo Holdings was -26.60% per year.

KushCo Holdings Gross Margin % Historical Data

The historical data trend for KushCo 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.

KushCo Holdings Gross Margin % Chart

KushCo Holdings Annual Data

Trend

Aug14

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Gross Margin %

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32.61

38.09

25.61

16.49

6.65

KushCo Holdings Quarterly Data
	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21
Gross Margin %	Get a 7-Day Free Trial															10.65	25.83	21.45	19.59	15.43

Competitive Comparison of KushCo Holdings's Gross Margin %

For the Packaging & Containers subindustry, KushCo 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.

KushCo Holdings's Gross Margin % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, KushCo Holdings's Gross Margin % distribution charts can be found below:

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

KushCo Holdings Gross Margin % Calculation

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

KushCo Holdings's Gross Margin for the fiscal year that ended in Aug. 2020 is calculated as

Gross Margin % (A: Aug. 2020 )	=	Gross Profit (A: Aug. 2020 )	/	Revenue (A: Aug. 2020 )
	=	7.6	/	113.837
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(113.837 - 106.265)	/	113.837
	=	6.65 %

KushCo Holdings's Gross Margin for the quarter that ended in May. 2021 is calculated as

Gross Margin % (Q: May. 2021 )	=	Gross Profit (Q: May. 2021 )	/	Revenue (Q: May. 2021 )
	=	4.4	/	28.319
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(28.319 - 23.95)	/	28.319
	=	15.43 %

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.

KushCo Holdings (OTCPK:KSHB) 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

KushCo Holdings had a gross margin of 15.43% for the quarter that ended in May. 2021 => No sustainable 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.

KushCo Holdings Gross Margin % Related Terms

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

KushCo Holdings (KushCo Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » KushCo Holdings Inc (OTCPK:KSHB) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

6261 Katella Avenue, Suite 250, Cypress, CA, USA, 90630

Website

https://www.kushco.com

KushCo Holdings Inc is engaged in marketing and selling of customized packaging products, vaporizers, hydrocarbon gases, solvents, accessories and branding solutions to customers operating in the regulated medical and recreational cannabis industries. The firm's packaging products consist of bottles, bags, tubes, and containers. Its subsidiaries and brands provide product quality, customer service, compliance knowledge and a local presence in serving its diverse customer base. The firm has sold more than 1 billion units to growers, processors and producers across North America, South America, and Europe.

Executives

Stephen Christoffersen	officer: Chief Financial Officer	6261 KATELLA AVENUE, SUITE 250, CYPRESS CA 90630
Peter A. Kadens	director	C/O KUSHCO HOLDINGS, INC., 6261 KATELLA AVE STE 250, CYPRESS CA 90630
Nicholas Kovacevich	director, officer: Chairman and CEO	2618 SAN MIGUEL DRIVE, #480, NEWPORT BEACH CA 92660
Oliveira Rodrigo De	officer: Chief Operating Officer	C/O KUSHCO HOLDINGS, INC., 11958 MONARCH STREET, GARDEN GROVE CA 92841
Donald H Hunter	director	C/O HARBOR GLOBAL CO LTD, ONE FANEUIL HALL MARKET PLACE, BOSTON MA 02109
Barbara Goodstein	director	23 MAIN STREET, HOLMDEL NJ 07733
Dallas Imbimbo	director	1800 NEWPORT CIRCLE, SANTA ANA CA 92705
Eric Baum	director	866 BERKSHIRE DRIVE, WESTBURY NY 11590
Christopher Tedford	officer: Chief Financial Officer	C/O KUSHCO HOLDINGS, INC. 11958 MONARCH STREET GARDEN GROVE CA 92841
Jason Vegotsky	officer: Chief Revenue Officer	C/O KUSHCO HOLDINGS, INC. 11958 MONARCH STREET GARDEN GROVE CA 92841
Jim Mccormick	officer: CFO and COO	1800 NEWPORT CIRCLE SANTA ANA CA 92705
Ben Wu	other: Consultant, Former COO	1800 NEWPORT CIRCLE SANTA ANA CA 92705
Chris Martin	other: None	1800 NEWPORT CIRCLE SANTA ANA CA 92705
Greg Gamet	other: None	3539 GAYLORD STREET DENVER CO 80205
Jeffrey Meng	10 percent owner	17595 HARVARD STREET C552 IRVINE CA 92614