Limoneira Co gross margin has been in long-term decline. The average rate of decline per year is -17.9%.
The historical rank and industry rank for Limoneira Co's Gross Margin % or its related term are showing as below:
LMNR'
s Gross Margin % Range Over the Past 10 Years
Min: 1.69 Med: 14.44 Max: 23.84
Current: 5.58
During the past 13 years, the highestGross Margin % of Limoneira Co was 23.84%. The lowest was 1.69%. And the median was 14.44%.
LMNR's Gross Margin % is ranked worse than 91.54% of 1809
companies
in the Consumer Packaged Goods industry
Industry Median: 25.04
vs LMNR: 5.58
Limoneira Co had a gross margin of -1.42% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Limoneira Co was -17.90% per year.
Limoneira Co Gross Margin % Historical Data
The historical data trend for Limoneira Co'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 Limoneira Co's Gross Margin %
For the Farm Products subindustry, Limoneira Co'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.
Limoneira Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Limoneira Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Limoneira Co'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.
Limoneira Co (NAS:LMNR) 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
Limoneira Co had a gross margin of -1.42% for the quarter that ended in Jan. 2024 => 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.
Limoneira Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Limoneira Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Limoneira Co is an agribusiness company. The company's operating segments include Fresh Lemons; Lemon Packing; Avocados and Other Agribusiness. It generates maximum revenue from the Fresh Lemons segment.
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