Gross Margin % is calculated as gross profit divided by its revenue. Casella Waste Systems's Gross Profit for the
three
months ended in Dec. 2023 was $120 Mil. Casella Waste Systems's Revenue for the
three
months ended in Dec. 2023 was $360 Mil. Therefore, Casella Waste Systems's Gross Margin % for the quarter that ended in Dec. 2023 was 33.48%.
The historical rank and industry rank for Casella Waste Systems's Gross Margin % or its related term are showing as below:
CWST'
s Gross Margin % Range Over the Past 10 Years
Min: 28.74 Med: 32.4 Max: 34.5
Current: 34.2
During the past 13 years, the highestGross Margin % of Casella Waste Systems was 34.50%. The lowest was 28.74%. And the median was 32.40%.
CWST's Gross Margin % is ranked better than 63.56% of 225
companies
in the Waste Management industry
Industry Median: 28.57
vs CWST: 34.20
Casella Waste Systems had a gross margin of 33.48% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Casella Waste Systems was 1.80% per year.
Casella Waste Systems Gross Margin % Historical Data
The historical data trend for Casella Waste Systems'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 Casella Waste Systems's Gross Margin %
For the Waste Management subindustry, Casella Waste Systems'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.
Casella Waste Systems's Gross Margin % Distribution in the Waste Management Industry
For the Waste Management industry and Industrials sector, Casella Waste Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Casella Waste Systems'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.
Casella Waste Systems (NAS:CWST) 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
Casella Waste Systems had a gross margin of 33.48% 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.
Casella Waste Systems Gross Margin % Related Terms
Thank you for viewing the detailed overview of Casella Waste Systems's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Casella Waste Systems (Casella Waste Systems) Business Description
Casella Waste Systems Inc is a solid waste removal company, providing resource management services to residential, commercial, municipal, and industrial customers in the Northeastern United States. The company's reportable segments on Geographical basis include Eastern and Western regions as well as the Resource solution segment. It generates maximum revenue from the Western region segment. The company services include Recycling, Collection, Organics, Energy, Landfills, Special Waste as well as Professional Services.
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