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GrafTech International (GrafTech International) Gross Margin % : -14.35% (As of Dec. 2023)


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What is GrafTech International Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. GrafTech International's Gross Profit for the three months ended in Dec. 2023 was $-19.7 Mil. GrafTech International's Revenue for the three months ended in Dec. 2023 was $137.1 Mil. Therefore, GrafTech International's Gross Margin % for the quarter that ended in Dec. 2023 was -14.35%.

Warning Sign:

GrafTech International Ltd gross margin has been in long-term decline. The average rate of decline per year is -30.8%.


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

EAF' s Gross Margin % Range Over the Past 10 Years
Min: -6.9   Med: 43.31   Max: 62.78
Current: 5.84


During the past 13 years, the highest Gross Margin % of GrafTech International was 62.78%. The lowest was -6.90%. And the median was 43.31%.

EAF's Gross Margin % is ranked worse than
94.18% of 2937 companies
in the Industrial Products industry
Industry Median: 26.42 vs EAF: 5.84

GrafTech International had a gross margin of -14.35% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for GrafTech International was -30.80% per year.


GrafTech International Gross Margin % Historical Data

The historical data trend for GrafTech International'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.

GrafTech International Gross Margin % Chart

GrafTech International 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 58.10 53.95 47.89 43.31 5.84

GrafTech International 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 33.95 18.84 15.28 0.87 -14.35

Competitive Comparison of GrafTech International's Gross Margin %

For the Electrical Equipment & Parts subindustry, GrafTech International'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.


GrafTech International's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, GrafTech International's Gross Margin % distribution charts can be found below:

* The bar in red indicates where GrafTech International's Gross Margin % falls into.



GrafTech International Gross Margin % Calculation

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

GrafTech International'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 )
=36.2 / 620.5
=(Revenue - Cost of Goods Sold) / Revenue
=(620.5 - 584.288) / 620.5
=5.84 %

GrafTech International'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 )
=-19.7 / 137.145
=(Revenue - Cost of Goods Sold) / Revenue
=(137.145 - 156.824) / 137.145
=-14.35 %

* 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.


GrafTech International  (NYSE:EAF) 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

GrafTech International had a gross margin of -14.35% 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.


GrafTech International Gross Margin % Related Terms

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


GrafTech International (GrafTech International) Business Description

Traded in Other Exchanges
Address
982 Keynote Circle, Brooklyn Heights, Independence, OH, USA, 44131
GrafTech International Ltd is a producer of specialized graphite electrodes. The electrode is an essential part of the electric arc furnace process used in aluminum smelters and steel minimills. The company operates into one reporting segment namely Industrial Materials. The Industrial Materials segment manufactures high-quality graphite electrodes essential to the production of electric arc furnace steel and other ferrous and non-ferrous metals. It offers graphite electrodes and needle coke products.
Executives
Brookfield Private Funds Holdings Inc. director, 10 percent owner THREE WORLD FINANCIAL CENTER, 200 VESEY STREET, 11TH FLOOR, NEW YORK NY 10281
Bcp Gp Ltd director, 10 percent owner, See Remarks C/O BROOKFIELD ASSET MANAGEMENT INC., BROOKFIELD PLACE, 181 BAY STREET, SUITE, TORONTO A6 M5J2T3
Diego Donoso director 2211 H.H. DOW WAY, MIDLAND MI 48674
Marcel Kessler director, officer: CEO and President 982 KEYNOTE CIRCLE, BROOKLYN HEIGHTS OH 44131
Jean-marc Germain director 982 KEYNOTE CIRCLE, BROOKLYN HEIGHTS OH 44131
Timothy K Flanagan officer: CFO, VP Finance & Treasurer C/O GRAFTECH INTERNATIONAL LTD., 982 KEYNOTE CIRCLE, BROOKLYN HEIGHTS OH 44131
David J. Rintoul director, officer: President and CEO 600 GRANT STREET, SUITE 6100, PITTSBURGH PA 15219
Debra Fine director 590 MADISON AVENUE, 5TH FLOOR, NEW YORK NY 10022
Henry R. Keizer director MONTPELIER HOUSE, 94 PITTS BAY ROAD, PEMBROKE D0 HM 08
Leslie D Dunn director
Brookfield Business Partners Ltd director, 10 percent owner 73 FRONT STREET, 5TH FLOOR, HAMILTON D0 HM12
Bcp Iv Bermuda Investor Lp director, 10 percent owner 181 BAY STREET, SUITE 300, BROOKFIELD PLACE, TORONTO A6 M5J 2T3
Brookfield Private Equity Group Holdings Lp director, 10 percent owner C/O BROOKFIELD ASSET MANAGEMENT INC., BROOKFIELD PLACE, 181 BAY STREET, SUITE, TORONTO A6 M5J2T3
Brookfield Us Inc. director, 10 percent owner BROOKFIELD PLACE, 250 VESEY STREET, 15TH FLOOR, NEW YORK NY 10281-1023
Brookfield Private Equity Holdings Llc director, 10 percent owner C/O BROOKFIELD ASSET MANAGEMENT INC., BROOKFIELD PLACE, 250 VESEY STREET, NEW YORK NY 10281-1023