Gross Margin % is calculated as gross profit divided by its revenue. Lydall's Gross Profit for the
three
months ended in Jun. 2021 was $47.8 Mil. Lydall's Revenue for the
three
months ended in Jun. 2021 was $221.7 Mil. Therefore, Lydall's Gross Margin % for the quarter that ended in Jun. 2021 was 21.55%.
Warning Sign:
Lydall Inc gross margin has been in long term decline. The average rate of decline per year is -5.8%.
The historical rank and industry rank for Lydall's Gross Margin % or its related term are showing as below:
LDL'
s Gross Margin % Range Over the Past 10 Years
Min: 17.6 Med: 20.97 Max: 24.49
Current: 20.11
During the past 13 years, the highestGross Margin % of Lydall was 24.49%. The lowest was 17.60%. And the median was 20.97%.
LDL's Gross Margin % is not ranked
in the Industrial Products industry.
Industry Median: 26.45
vs LDL: 20.11
Lydall had a gross margin of 21.55% for the quarter that ended in Jun. 2021 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lydall was -5.80% per year.
Lydall Gross Margin % Historical Data
The historical data trend for Lydall'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 Industrial Machinery subindustry, Lydall'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.
Lydall's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lydall's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lydall'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.
Lydall (NYSE:LDL) 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
Lydall had a gross margin of 21.55% for the quarter that ended in Jun. 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.
Lydall Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lydall's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lydall Inc, through its subsidiaries, designs and manufactures specialty engineered filtration media, industrial thermal insulating solutions, automotive thermal and acoustical barriers, medical filtration media and devices. The company's products are primarily sold directly to customers through an internal sales force and distributed via common carrier. Its reportable segments were Performance Materials, Technical Nonwovens and Thermal Acoustical Solutions. It derives most of its revenues from the United States of America.
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