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Martinrea International (Martinrea International) Gross Margin % : 11.82% (As of Dec. 2023)


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What is Martinrea International Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Martinrea International's Gross Profit for the three months ended in Dec. 2023 was $114 Mil. Martinrea International's Revenue for the three months ended in Dec. 2023 was $966 Mil. Therefore, Martinrea International's Gross Margin % for the quarter that ended in Dec. 2023 was 11.82%.

Warning Sign:

Martinrea International Inc gross margin has been in long-term decline. The average rate of decline per year is -5.5%.


The historical rank and industry rank for Martinrea International's Gross Margin % or its related term are showing as below:

MRETF' s Gross Margin % Range Over the Past 10 Years
Min: 9.13   Med: 12.03   Max: 15.18
Current: 12.65


During the past 13 years, the highest Gross Margin % of Martinrea International was 15.18%. The lowest was 9.13%. And the median was 12.03%.

MRETF's Gross Margin % is ranked worse than
74.43% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs MRETF: 12.65

Martinrea International had a gross margin of 11.82% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Martinrea International was -5.50% per year.


Martinrea International Gross Margin % Historical Data

The historical data trend for Martinrea International'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.

* Premium members only.

Martinrea International Gross Margin % Chart

Martinrea International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.17 12.30 9.13 11.76 12.65

Martinrea International Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.24 12.84 12.75 13.14 11.82

Competitive Comparison of Martinrea International's Gross Margin %

For the Auto Parts subindustry, Martinrea International'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.


Martinrea International's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Martinrea International's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Martinrea International's Gross Margin % falls into.



Martinrea International Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Martinrea International's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=503.4 / 3980.324
=(Revenue - Cost of Goods Sold) / Revenue
=(3980.324 - 3476.897) / 3980.324
=12.65 %

Martinrea International's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=114.2 / 966.101
=(Revenue - Cost of Goods Sold) / Revenue
=(966.101 - 851.888) / 966.101
=11.82 %

* 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.


Martinrea International  (OTCPK:MRETF) 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

Martinrea International had a gross margin of 11.82% 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.


Martinrea International Gross Margin % Related Terms

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Martinrea International (Martinrea International) Business Description

Traded in Other Exchanges
Address
3210 Langstaff Road, Vaughan, ON, CAN, L4K 5B2
Martinrea International Inc is a diversified and global automotive supplier engaged in the design, development and manufacturing of highly engineered, value-added Lightweight Structures and Propulsion Systems. Its products are used primarily in the automotive sector by the majority of vehicle manufacturers. Martinrea manufactures aluminum engine blocks, specialized products, suspensions, chassis modules and components, and fluid management systems for fuel, power steering and brake fluids. The company also provides metal forming and welding solutions. The largest end market for Martinrea's products in North America.