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Oswal Yarns (BOM:514460) Gross Margin % : 10.98% (As of Dec. 2023)


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What is Oswal Yarns Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Oswal Yarns's Gross Profit for the three months ended in Dec. 2023 was ₹0.66 Mil. Oswal Yarns's Revenue for the three months ended in Dec. 2023 was ₹5.97 Mil. Therefore, Oswal Yarns's Gross Margin % for the quarter that ended in Dec. 2023 was 10.98%.

Warning Sign:

Oswal Yarns Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


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

BOM:514460' s Gross Margin % Range Over the Past 10 Years
Min: 7.97   Med: 9.34   Max: 12.13
Current: 12.13


During the past 13 years, the highest Gross Margin % of Oswal Yarns was 12.13%. The lowest was 7.97%. And the median was 9.34%.

BOM:514460's Gross Margin % is ranked worse than
77.89% of 1031 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.22 vs BOM:514460: 12.13

Oswal Yarns had a gross margin of 10.98% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Oswal Yarns was -2.50% per year.


Oswal Yarns Gross Margin % Historical Data

The historical data trend for Oswal Yarns'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.

Oswal Yarns Gross Margin % Chart

Oswal Yarns 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 11.69 8.93 8.47 11.93 8.48

Oswal Yarns Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 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 13.42 5.13 -6.03 16.43 10.98

Competitive Comparison of Oswal Yarns's Gross Margin %

For the Textile Manufacturing subindustry, Oswal Yarns'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.


Oswal Yarns's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Oswal Yarns's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Oswal Yarns's Gross Margin % falls into.



Oswal Yarns Gross Margin % Calculation

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

Oswal Yarns'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 )
=1.1 / 12.538
=(Revenue - Cost of Goods Sold) / Revenue
=(12.538 - 11.475) / 12.538
=8.48 %

Oswal Yarns'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 )
=0.7 / 5.965
=(Revenue - Cost of Goods Sold) / Revenue
=(5.965 - 5.31) / 5.965
=10.98 %

* 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.


Oswal Yarns  (BOM:514460) 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

Oswal Yarns had a gross margin of 10.98% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


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.


Oswal Yarns Gross Margin % Related Terms

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


Oswal Yarns (BOM:514460) Business Description

Traded in Other Exchanges
N/A
Address
Link Road, Industrial Area - A, Oswal House, Ludhiana, PB, IND, 141 003
Oswal Yarns Ltd is an Indian-based company operating in the Textile industry. It is engaged in the manufacturing and trading of knitted clothes.

Oswal Yarns (BOM:514460) Headlines

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