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Marshall Machines (NSE:MARSHALL) Gross Margin % : 31.67% (As of Sep. 2023)


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What is Marshall Machines Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Marshall Machines's Gross Profit for the three months ended in Sep. 2023 was ₹5.68 Mil. Marshall Machines's Revenue for the three months ended in Sep. 2023 was ₹17.93 Mil. Therefore, Marshall Machines's Gross Margin % for the quarter that ended in Sep. 2023 was 31.67%.

Warning Sign:

Marshall Machines Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.9%.


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

NSE:MARSHALL' s Gross Margin % Range Over the Past 10 Years
Min: 18.71   Med: 32.91   Max: 47.72
Current: 31.67


During the past 10 years, the highest Gross Margin % of Marshall Machines was 47.72%. The lowest was 18.71%. And the median was 32.91%.

NSE:MARSHALL's Gross Margin % is ranked better than
63.31% of 2933 companies
in the Industrial Products industry
Industry Median: 26.57 vs NSE:MARSHALL: 31.67

Marshall Machines had a gross margin of 31.67% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Marshall Machines was -9.90% per year.


Marshall Machines Gross Margin % Historical Data

The historical data trend for Marshall Machines'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.

Marshall Machines Gross Margin % Chart

Marshall Machines Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.27 47.72 30.52 36.11 18.71

Marshall Machines Quarterly Data
Mar14 Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Dec20 Mar21 Sep21 Dec21 Mar22 Sep22 Mar23 Sep23
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 34.35 36.93 30.99 - 31.67

Competitive Comparison of Marshall Machines's Gross Margin %

For the Specialty Industrial Machinery subindustry, Marshall Machines'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.


Marshall Machines's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Marshall Machines's Gross Margin % distribution charts can be found below:

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



Marshall Machines Gross Margin % Calculation

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

Marshall Machines's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=64.5 / 344.953
=(Revenue - Cost of Goods Sold) / Revenue
=(344.953 - 280.425) / 344.953
=18.71 %

Marshall Machines's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=5.7 / 17.934
=(Revenue - Cost of Goods Sold) / Revenue
=(17.934 - 12.255) / 17.934
=31.67 %

* 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.


Marshall Machines  (NSE:MARSHALL) 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

Marshall Machines had a gross margin of 31.67% for the quarter that ended in Sep. 2023 => 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.


Marshall Machines Gross Margin % Related Terms

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


Marshall Machines (NSE:MARSHALL) Business Description

Traded in Other Exchanges
N/A
Address
C 86, Phase-V, Focal Point, Ludhiana, PB, IND, 141010
Marshall Machines Ltd is an India based company engaged in the business of developing, manufacturing and marketing of Machine Tool Equipment including a wide range of Single spindle, Patented double and four spindle CNC machines, Automated robotic solutions and patent pending IoTQ suite of intelligent equipment. The company also sells machine parts of the manufactured machines as well to existing machinery buyers. Its products and services are offered to a wide range of industries including manufacturers of Axles, Crankshafts, Auto Parts, Fans, Pumps, Bearings, Gear Blanks, and Bushes among others. The company sells its products in India and also exports it to other countries, of which key revenue is generated from sales made within the country.

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