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Ralco Agencies (XTAE:RLCO) Gross Margin % : 29.58% (As of Dec. 2023)


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What is Ralco Agencies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ralco Agencies's Gross Profit for the three months ended in Dec. 2023 was ₪19.2 Mil. Ralco Agencies's Revenue for the three months ended in Dec. 2023 was ₪64.8 Mil. Therefore, Ralco Agencies's Gross Margin % for the quarter that ended in Dec. 2023 was 29.58%.


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

XTAE:RLCO' s Gross Margin % Range Over the Past 10 Years
Min: 21.15   Med: 26.74   Max: 33
Current: 26.75


During the past 11 years, the highest Gross Margin % of Ralco Agencies was 33.00%. The lowest was 21.15%. And the median was 26.74%.

XTAE:RLCO's Gross Margin % is ranked better than
54.51% of 2438 companies
in the Hardware industry
Industry Median: 24.405 vs XTAE:RLCO: 26.75

Ralco Agencies had a gross margin of 29.58% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Ralco Agencies was 0.40% per year.


Ralco Agencies Gross Margin % Historical Data

The historical data trend for Ralco Agencies'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.

Ralco Agencies Gross Margin % Chart

Ralco Agencies 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 27.88 29.92 33.00 26.73 26.75

Ralco Agencies Quarterly Data
Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 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 28.52 26.22 27.17 24.41 29.58

Competitive Comparison of Ralco Agencies's Gross Margin %

For the Electronics & Computer Distribution subindustry, Ralco Agencies'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.


Ralco Agencies's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Ralco Agencies's Gross Margin % distribution charts can be found below:

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



Ralco Agencies Gross Margin % Calculation

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

Ralco Agencies'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 )
=72.8 / 272.106
=(Revenue - Cost of Goods Sold) / Revenue
=(272.106 - 199.314) / 272.106
=26.75 %

Ralco Agencies'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 )
=19.2 / 64.81
=(Revenue - Cost of Goods Sold) / Revenue
=(64.81 - 45.638) / 64.81
=29.58 %

* 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.


Ralco Agencies  (XTAE:RLCO) 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

Ralco Agencies had a gross margin of 29.58% for the quarter that ended in Dec. 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.


Ralco Agencies Gross Margin % Related Terms

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Ralco Agencies (XTAE:RLCO) Business Description

Traded in Other Exchanges
N/A
Address
31 Hametzuda Street, Azur, ISR, 58001
Ralco Agencies Ltd is engaged in import & distribution of consumer products manufactured by zanussi sharp and blomberg. It distributes refrigerators, LCD televisions, microwave ovens, dishwashers & built-in ovens, among others. It markets its products to private stores and marketing chains that specialized in the marketing of electrical and electronic products.

Ralco Agencies (XTAE:RLCO) Headlines

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