Gross Margin % is calculated as gross profit divided by its revenue. Hawkins's Gross Profit for the
three
months ended in Dec. 2023 was $42.2 Mil. Hawkins's Revenue for the
three
months ended in Dec. 2023 was $208.5 Mil. Therefore, Hawkins's Gross Margin % for the quarter that ended in Dec. 2023 was 20.26%.
The historical rank and industry rank for Hawkins's Gross Margin % or its related term are showing as below:
HWKN'
s Gross Margin % Range Over the Past 10 Years
Min: 17.21 Med: 18.38 Max: 20.74
Current: 19.89
During the past 13 years, the highestGross Margin % of Hawkins was 20.74%. The lowest was 17.21%. And the median was 18.38%.
HWKN's Gross Margin % is ranked worse than 56.2% of 1509
companies
in the Chemicals industry
Industry Median: 22.32
vs HWKN: 19.89
Hawkins had a gross margin of 20.26% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hawkins was 1.50% per year.
Hawkins Gross Margin % Historical Data
The historical data trend for Hawkins'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 Hawkins's Gross Margin %
For the Specialty Chemicals subindustry, Hawkins'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.
Hawkins's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Hawkins's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hawkins'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.
Hawkins (NAS:HWKN) 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
Hawkins had a gross margin of 20.26% 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.
Hawkins Gross Margin % Related Terms
Thank you for viewing the detailed overview of Hawkins's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hawkins Inc manufactures and sells a variety of chemicals and ingredients. The firm organizes itself into three segments based on the product type. The industrial segment, which generates the majority of revenue, sells private label bleach, caustic soda, sulfuric acid, hydrochloric acid, phosphoric acid, potassium hydroxide, and aqua ammonia. The water treatment segment sells chemicals and equipment used to treat potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool water. The health and nutrition segment sells ingredients to food, beverage, personal care, and dietary supplement producers. The vast majority of revenue comes from the United States.
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