SKUFF (SKF AB) Gross Margin % : 27.63% (As of Sep. 2024)

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What is SKF AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SKF AB's Gross Profit for the three months ended in Sep. 2024 was $640 Mil. SKF AB's Revenue for the three months ended in Sep. 2024 was $2,316 Mil. Therefore, SKF AB's Gross Margin % for the quarter that ended in Sep. 2024 was 27.63%.

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

SKUFF' s Gross Margin % Range Over the Past 10 Years
Min: 24.35 Med: 24.96 Max: 28.48
Current: 25.86

During the past 13 years, the highest Gross Margin % of SKF AB was 28.48%. The lowest was 24.35%. And the median was 24.96%.

SKUFF's Gross Margin % is ranked worse than
52.5% of 2935 companies
in the Industrial Products industry
Industry Median: 26.72 vs SKUFF: 25.86

SKF AB had a gross margin of 27.63% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for SKF AB was 1.10% per year.

SKF AB Gross Margin % Historical Data

The historical data trend for SKF AB'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.

SKF AB Gross Margin % Chart

SKF AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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24.35

26.06

28.48

25.24

25.36

SKF AB Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Gross Margin %	Get a 7-Day Free Trial															25.65	20.21	28.73	26.83	27.63

Competitive Comparison of SKF AB's Gross Margin %

For the Tools & Accessories subindustry, SKF AB'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.

SKF AB's Gross Margin % Distribution in the Industrial Products Industry

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

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

SKF AB Gross Margin % Calculation

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

SKF AB'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 )
	=	2567.9	/	10127.223
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10127.223 - 7559.371)	/	10127.223
	=	25.36 %

SKF AB's Gross Margin for the quarter that ended in Sep. 2024 is calculated as

Gross Margin % (Q: Sep. 2024 )	=	Gross Profit (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	640	/	2316.16
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2316.16 - 1676.117)	/	2316.16
	=	27.63 %

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.

SKF AB (OTCPK:SKUFF) 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

SKF AB had a gross margin of 27.63% for the quarter that ended in Sep. 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.

SKF AB Gross Margin % Related Terms

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SKF AB Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » SKF AB (OTCPK:SKUFF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SKFRY:USA SKF B:Sweden SKF A:Sweden SKFBs:UK 0NWX:UK 0NWW:UK SKFB:Germany

Address

Sven Wingquists Gata 2, Gothenburg, SWE, SE-415 50

Website

https://www.skf.com

SKF's history goes back to the first major patents in ball bearings, when in 1907 it was the first to patent the self-aligning ball bearing. SKF, along with the Schaeffler Group, are the top two global ball bearing suppliers followed by Timken, NSK, NTN, and JTEKT. Combined, these six companies supply about 60% of the world's ball bearings. However, most of them have sector niches as ball bearings for industrial purposes are engineered for specific applications. SKF is based out of Sweden and has a global manufacturing footprint of 106 sites and about 17,000 global distributor locations. The firm operates under two segments: industrials, which has a fairly fragmented customer base; and automotive, which is the opposite, with a concentrated customer base including the likes of Tesla.