Valhi's gross profit for the
three
months ended in Dec. 2023 was $65 Mil. Valhi's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $245 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Valhi's gross profit for the
three
months ended in Dec. 2023 was $65 Mil. Valhi's Revenue for the
three
months ended in Dec. 2023 was $453 Mil. Therefore, Valhi's Gross Margin % for the quarter that ended in Dec. 2023 was 14.35%.
Valhi had a gross margin of 14.35% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
During the past 13 years, the highestGross Margin % of Valhi was 33.47%. The lowest was 12.76%. And the median was 22.18%.
Warning Sign:
Valhi Inc gross margin has been in long-term decline. The average rate of decline per year is -12.8%.
Valhi Gross Profit Historical Data
The historical data trend for Valhi's Gross Profit 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.
For the Chemicals subindustry, Valhi's Gross Profit, along with its competitors' market caps and Gross Profit 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.
Valhi's Gross Profit Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Valhi's Gross Profit distribution charts can be found below:
* The bar in red indicates where Valhi's Gross Profit falls into.
Valhi Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Valhi's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $245 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Valhi's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as
* 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.
Valhi (NYSE:VHI) Gross Profit 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
Valhi had a gross margin of 14.35% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
Valhi Gross Profit Related Terms
Thank you for viewing the detailed overview of Valhi's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Valhi Inc is a holding company that provides chemicals, security products, waste management systems, and real estate development and management through its subsidiaries. It operates its business in three segments, which are Chemicals, Component Products, and Real Estate Management and Development. Through its segments the company produces and markets titanium dioxide pigments which generate the majority of the company revenues; manufactures security products; processes, treats, stores, and disposes of radioactive and toxic waste; and provides real estate management services. Valhi derives maximum revenue from the Chemicals segment. The company has a presence in Europe, North America, Asia Pacific, and the Rest of the World.
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