Gross Margin % is calculated as gross profit divided by its revenue. MRC Global's Gross Profit for the
three
months ended in Dec. 2023 was $153 Mil. MRC Global's Revenue for the
three
months ended in Dec. 2023 was $768 Mil. Therefore, MRC Global's Gross Margin % for the quarter that ended in Dec. 2023 was 19.92%.
The historical rank and industry rank for MRC Global's Gross Margin % or its related term are showing as below:
MRC'
s Gross Margin % Range Over the Past 10 Years
Min: 15.39 Med: 17 Max: 20.22
Current: 20.22
During the past 13 years, the highestGross Margin % of MRC Global was 20.22%. The lowest was 15.39%. And the median was 17.00%.
MRC's Gross Margin % is ranked worse than 59.03% of 925
companies
in the Oil & Gas industry
Industry Median: 27.87
vs MRC: 20.22
MRC Global had a gross margin of 19.92% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for MRC Global was 2.90% per year.
MRC Global Gross Margin % Historical Data
The historical data trend for MRC Global'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 Oil & Gas Equipment & Services subindustry, MRC Global'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.
MRC Global Gross Margin % Distribution
For the Oil & Gas industry and Energy sector, MRC Global's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MRC Global'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.
MRC Global (NYSE:MRC) 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
MRC Global had a gross margin of 19.92% 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.
MRC Global Gross Margin % Related Terms
Thank you for viewing the detailed overview of MRC Global's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
MRC Global Inc distributes pipes, valves, fittings, and related products and services to the energy industry. Products are often used in the construction, maintenance, repair, and overhaul of equipment used in extreme operating conditions. In these conditions and other environments, MRC's valve products give the customer the ability to control the direction, velocity, and pressure of fluids and gases within transmission networks. In addition, other products can be used to regulate flow and on/off service. MRC's other products, which include pipe, steel fitting, and tubular goods, are used across all of the industries in which the company operates. Specialized services are delivered alongside this array of products to enhance the client relationship.
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