Gross Margin % is calculated as gross profit divided by its revenue. Magnit PJSC's Gross Profit for the
six
months ended in Jun. 2023 was $3,456.44 Mil. Magnit PJSC's Revenue for the
six
months ended in Jun. 2023 was $15,148.73 Mil. Therefore, Magnit PJSC's Gross Margin % for the quarter that ended in Jun. 2023 was 22.82%.
Warning Sign:
Magnit PJSC gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Magnit PJSC's Gross Margin % or its related term are showing as below:
MGJCL'
s Gross Margin % Range Over the Past 10 Years
Min: 22.8 Med: 24.63 Max: 28.88
Current: 22.62
During the past 13 years, the highestGross Margin % of Magnit PJSC was 28.88%. The lowest was 22.80%. And the median was 24.63%.
MGJCL's Gross Margin % is ranked worse than 51.45% of 311
companies
in the Retail - Defensive industry
Industry Median: 22.82
vs MGJCL: 22.62
Magnit PJSC had a gross margin of 22.82% for the quarter that ended in Jun. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Magnit PJSC was -1.60% per year.
Magnit PJSC Gross Margin % Historical Data
The historical data trend for Magnit PJSC'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 Magnit PJSC's Gross Margin %
For the Discount Stores subindustry, Magnit PJSC'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.
Magnit PJSC's Gross Margin % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Magnit PJSC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Magnit PJSC'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.
Magnit PJSC (GREY:MGJCL) 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
Magnit PJSC had a gross margin of 22.82% for the quarter that ended in Jun. 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.
Magnit PJSC Gross Margin % Related Terms
Thank you for viewing the detailed overview of Magnit PJSC's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
PJSC Magnit operates in the retail and distribution of consumer goods under the Magnit, the DIXY and the Megamart names. The Group's retail operations are operated through convenience stores, cosmetic stores, supermarkets and other. The Group's business operations are located in the Russian Federation and relate primarily to retail sales of consumer goods. The company operates in about 4,000 localities. The company utilizes a multiformat model, which includes convenience and drogerie stores, supermarkets and pharmacies. Aside from commodity sales, it operates a private-label food production business. The company manages several plants for growing vegetables and the production of dry food and confectionery.
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