Gross Margin % is calculated as gross profit divided by its revenue. Steelcase's Gross Profit for the
three
months ended in Aug. 2024 was $295 Mil. Steelcase's Revenue for the
three
months ended in Aug. 2024 was $856 Mil. Therefore, Steelcase's Gross Margin % for the quarter that ended in Aug. 2024 was 34.52%.
Warning Sign:
Steelcase Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Steelcase's Gross Margin % or its related term are showing as below:
SCS'
s Gross Margin % Range Over the Past 10 Years
Min: 27.46 Med: 31.67 Max: 33.23
Current: 32.66
During the past 13 years, the highestGross Margin % of Steelcase was 33.23%. The lowest was 27.46%. And the median was 31.67%.
SCS's Gross Margin % is ranked better than 60.58% of 416
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 28.695
vs SCS: 32.66
Steelcase had a gross margin of 34.52% for the quarter that ended in Aug. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Steelcase was -1.20% per year.
Steelcase Gross Margin % Historical Data
The historical data trend for Steelcase'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.
Competitive Comparison of Steelcase's Gross Margin %
For the Furnishings, Fixtures & Appliances subindustry, Steelcase'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.
Steelcase's Gross Margin % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Steelcase's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Steelcase's Gross Margin % falls into.
* 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.
Steelcase (NYSE:SCS) 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
Steelcase had a gross margin of 34.52% for the quarter that ended in Aug. 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.
Steelcase Gross Margin % Related Terms
Thank you for viewing the detailed overview of Steelcase's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Steelcase Inc is a furniture company based in the United States. Its brands such as Steelcase, AMQ, Coalesse, Designtex, and others offer a portfolio of furniture and architectural products and services designed to help customers create workplaces. It markets its products and services to businesses and organizations predominantly through a network of dealers and also sells to consumers in markets around the world through web-based and retail distribution channels. The company's reportable segments include the Americas which generates key revenue, and International.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SCS has been successfully added to your 