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S Alam Cold Rolled Steels (DHA:SALAMCRST) Gross Margin % : 6.58% (As of Dec. 2023)


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What is S Alam Cold Rolled Steels Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. S Alam Cold Rolled Steels's Gross Profit for the three months ended in Dec. 2023 was BDT67 Mil. S Alam Cold Rolled Steels's Revenue for the three months ended in Dec. 2023 was BDT1,017 Mil. Therefore, S Alam Cold Rolled Steels's Gross Margin % for the quarter that ended in Dec. 2023 was 6.58%.

Warning Sign:

S Alam Cold Rolled Steels Ltd gross margin has been in long-term decline. The average rate of decline per year is -13.5%.


The historical rank and industry rank for S Alam Cold Rolled Steels's Gross Margin % or its related term are showing as below:

DHA:SALAMCRST' s Gross Margin % Range Over the Past 10 Years
Min: 0.14   Med: 7.53   Max: 11.22
Current: 8.61


During the past 13 years, the highest Gross Margin % of S Alam Cold Rolled Steels was 11.22%. The lowest was 0.14%. And the median was 7.53%.

DHA:SALAMCRST's Gross Margin % is ranked worse than
66.67% of 585 companies
in the Steel industry
Industry Median: 13.01 vs DHA:SALAMCRST: 8.61

S Alam Cold Rolled Steels had a gross margin of 6.58% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for S Alam Cold Rolled Steels was -13.50% per year.


S Alam Cold Rolled Steels Gross Margin % Historical Data

The historical data trend for S Alam Cold Rolled Steels'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.

S Alam Cold Rolled Steels Gross Margin % Chart

S Alam Cold Rolled Steels Annual Data
Trend Sep13 Sep14 Sep15 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.92 10.53 0.14 4.88 9.57

S Alam Cold Rolled Steels Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 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 7.32 10.11 7.12 9.16 6.58

Competitive Comparison of S Alam Cold Rolled Steels's Gross Margin %

For the Steel subindustry, S Alam Cold Rolled Steels'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.


S Alam Cold Rolled Steels's Gross Margin % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, S Alam Cold Rolled Steels's Gross Margin % distribution charts can be found below:

* The bar in red indicates where S Alam Cold Rolled Steels's Gross Margin % falls into.



S Alam Cold Rolled Steels Gross Margin % Calculation

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

S Alam Cold Rolled Steels's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=527.8 / 5512.855
=(Revenue - Cost of Goods Sold) / Revenue
=(5512.855 - 4985.044) / 5512.855
=9.57 %

S Alam Cold Rolled Steels'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 )
=66.9 / 1016.801
=(Revenue - Cost of Goods Sold) / Revenue
=(1016.801 - 949.898) / 1016.801
=6.58 %

* 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.


S Alam Cold Rolled Steels  (DHA:SALAMCRST) 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

S Alam Cold Rolled Steels had a gross margin of 6.58% 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.


S Alam Cold Rolled Steels Gross Margin % Related Terms

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


S Alam Cold Rolled Steels (DHA:SALAMCRST) Business Description

Traded in Other Exchanges
N/A
Address
S. Alam Bhaban, Asadgonj, Chattogram, BGD, 2119
S Alam Cold Rolled Steels Ltd is a steel manufacturing company. Its business activities include manufacturing and marketing cold rolled steel strips and galvanized steel sheets. The company has two business segments - the Cold Rolled Strips segment, which includes purchasing hot roll and manufacturing and distribution of cold-rolled strips; and the Non-Oxide Furnace segment which comprises purchasing cold-rolled strips and manufacturing and distribution of galvanized steel sheets.

S Alam Cold Rolled Steels (DHA:SALAMCRST) Headlines

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