Deere (MIL:1DE) Gross Margin % : 37.03% (As of Oct. 2024)

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What is Deere Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Deere's Gross Profit for the three months ended in Oct. 2024 was €3,680 Mil. Deere's Revenue for the three months ended in Oct. 2024 was €9,939 Mil. Therefore, Deere's Gross Margin % for the quarter that ended in Oct. 2024 was 37.03%.

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

MIL:1DE' s Gross Margin % Range Over the Past 10 Years
Min: 27.89 Med: 30.33 Max: 38.59
Current: 38.59

During the past 13 years, the highest Gross Margin % of Deere was 38.59%. The lowest was 27.89%. And the median was 30.33%.

MIL:1DE's Gross Margin % is ranked better than
87.02% of 208 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 24.085 vs MIL:1DE: 38.59

Deere had a gross margin of 37.03% for the quarter that ended in Oct. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Deere was 5.30% per year.

Deere Gross Margin % Historical Data

The historical data trend for Deere'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.

Deere Gross Margin % Chart

Deere Annual Data

Trend

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

Gross Margin %

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31.27

31.87

30.67

37.02

38.59

Deere Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Gross Margin %	Get a 7-Day Free Trial															36.31	39.22	38.94	38.92	37.03

Competitive Comparison of Deere's Gross Margin %

For the Farm & Heavy Construction Machinery subindustry, Deere'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.

Deere's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Gross Margin % distribution charts can be found below:

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

Deere Gross Margin % Calculation

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

Deere's Gross Margin for the fiscal year that ended in Oct. 2024 is calculated as

Gross Margin % (A: Oct. 2024 )	=	Gross Profit (A: Oct. 2024 )	/	Revenue (A: Oct. 2024 )
	=	17896.4	/	46375.524
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(46375.524 - 28479.114)	/	46375.524
	=	38.59 %

Deere's Gross Margin for the quarter that ended in Oct. 2024 is calculated as

Gross Margin % (Q: Oct. 2024 )	=	Gross Profit (Q: Oct. 2024 )	/	Revenue (Q: Oct. 2024 )
	=	3680.3	/	9939.186
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9939.186 - 6258.924)	/	9939.186
	=	37.03 %

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.

Deere (MIL:1DE) 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

Deere had a gross margin of 37.03% for the quarter that ended in Oct. 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.

Deere Gross Margin % Related Terms

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Deere Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Deere & Co (MIL:1DE) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

DE:USA DE:Mexico 0R2P:UK DCO0:Germany DCO:Germany DCO:Germany DCO:Germany DCO:Germany DEER:Canada DEEC34:Brazil DEER:Austria DE:Argentina

Address

One John Deere Place, Moline, IL, USA, 61265

Website

https://www.deere.com

Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry in their green and yellow livery. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through an extensive dealer network, which includes over 2,000 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.

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