Gross Margin % is calculated as gross profit divided by its revenue. Kraton's Gross Profit for the
three
months ended in Dec. 2021 was $147 Mil. Kraton's Revenue for the
three
months ended in Dec. 2021 was $512 Mil. Therefore, Kraton's Gross Margin % for the quarter that ended in Dec. 2021 was 28.60%.
The historical rank and industry rank for Kraton's Gross Margin % or its related term are showing as below:
KRA'
s Gross Margin % Range Over the Past 10 Years
Min: 16.26 Med: 24.21 Max: 29.88
Current: 29.88
During the past 13 years, the highestGross Margin % of Kraton was 29.88%. The lowest was 16.26%. And the median was 24.21%.
KRA's Gross Margin % is not ranked
in the Chemicals industry.
Industry Median: 22.31
vs KRA: 29.88
Kraton had a gross margin of 28.60% for the quarter that ended in Dec. 2021 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Kraton was -0.30% per year.
Kraton Gross Margin % Historical Data
The historical data trend for Kraton'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.
For the Specialty Chemicals subindustry, Kraton'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.
Kraton's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kraton's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kraton'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.
Kraton (NYSE:KRA) 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
Kraton had a gross margin of 28.60% for the quarter that ended in Dec. 2021 => 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.
Kraton Gross Margin % Related Terms
Thank you for viewing the detailed overview of Kraton's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kraton Corp is a specialty chemicals company that primarily manufactures elastomers and synthetic replacements for rubber. The company's operating segments include polymer and chemical. It generates a majority revenue from the polymer segment. The polymer segment is composed of styrenic block copolymers (SBCs) and other engineered polymers business. The firm's chemical segment is composed of its pine-based specialty products business. It is a geographically diverse company, oprating in the Americas, Europe, the Middle East, Africa and Asia-Pacific. The company's products are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants, lubricants, medical, packaging, automotive, paving and roofing, and footwear products.
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