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Lowell Farms (Lowell Farms) Gross Margin % : -90.58% (As of Dec. 2023)


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What is Lowell Farms Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lowell Farms's Gross Profit for the three months ended in Dec. 2023 was $-6.79 Mil. Lowell Farms's Revenue for the three months ended in Dec. 2023 was $7.50 Mil. Therefore, Lowell Farms's Gross Margin % for the quarter that ended in Dec. 2023 was -90.58%.


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

LOWLF' s Gross Margin % Range Over the Past 10 Years
Min: -29   Med: -4.23   Max: 5.17
Current: -26.2


During the past 13 years, the highest Gross Margin % of Lowell Farms was 5.17%. The lowest was -29.00%. And the median was -4.23%.

LOWLF's Gross Margin % is ranked worse than
96.96% of 987 companies
in the Drug Manufacturers industry
Industry Median: 46.23 vs LOWLF: -26.20

Lowell Farms had a gross margin of -90.58% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

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


Lowell Farms Gross Margin % Historical Data

The historical data trend for Lowell Farms'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.

Lowell Farms Gross Margin % Chart

Lowell Farms 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 -29.01 5.17 4.61 -4.23 -26.33

Lowell Farms Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -32.44 1.75 -4.85 -7.15 -90.58

Competitive Comparison of Lowell Farms's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Lowell Farms'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.


Lowell Farms's Gross Margin % Distribution in the Drug Manufacturers Industry

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

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



Lowell Farms Gross Margin % Calculation

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

Lowell Farms'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 )
=-7.4 / 28.265
=(Revenue - Cost of Goods Sold) / Revenue
=(28.265 - 35.707) / 28.265
=-26.33 %

Lowell Farms's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-6.8 / 7.495
=(Revenue - Cost of Goods Sold) / Revenue
=(7.495 - 14.284) / 7.495
=-90.58 %

* 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.


Lowell Farms  (OTCPK:LOWLF) 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

Lowell Farms had a gross margin of -90.58% for the quarter that ended in Dec. 2023 => 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.


Lowell Farms Gross Margin % Related Terms

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


Lowell Farms (Lowell Farms) Business Description

Traded in Other Exchanges
Address
19 Quail Run Circle, Suite B, Salinas, CA, USA, 93907
Lowell Farms Inc is a California-based vertically-integrated cannabis company with advanced production capabilities supporting every step of the supply chain, including cultivation, extraction, manufacturing, brand sales, marketing, and distribution. The Company's operations are comprised of a single reporting operating segment. Its Brands include Lowell Herb Co. and Lowell Smokes, House Weed, Kaizen, Moon, and Original Pot Company. The company generates revenues from sales of extracts, distillates, branded and packaged cannabis flower, pre­rolls, concentrates, and edible products to retail licensed dispensaries and bulk flower, biomass and concentrates to licensed manufacturers and distributors in the state of California.