Gross Margin % is calculated as gross profit divided by its revenue. S&W Seed Co's Gross Profit for the
three
months ended in Dec. 2023 was $3.29 Mil. S&W Seed Co's Revenue for the
three
months ended in Dec. 2023 was $10.87 Mil. Therefore, S&W Seed Co's Gross Margin % for the quarter that ended in Dec. 2023 was 30.27%.
Warning Sign:
S&W Seed Co gross margin has been in long-term decline. The average rate of decline per year is -13.8%.
The historical rank and industry rank for S&W Seed Co's Gross Margin % or its related term are showing as below:
SANW'
s Gross Margin % Range Over the Past 10 Years
Min: 8.91 Med: 19.56 Max: 37.1
Current: 22.91
During the past 13 years, the highestGross Margin % of S&W Seed Co was 37.10%. The lowest was 8.91%. And the median was 19.56%.
SANW's Gross Margin % is ranked worse than 54.95% of 1809
companies
in the Consumer Packaged Goods industry
Industry Median: 25.04
vs SANW: 22.91
S&W Seed Co had a gross margin of 30.27% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for S&W Seed Co was -13.80% per year.
S&W Seed Co Gross Margin % Historical Data
The historical data trend for S&W Seed 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 S&W Seed Co's Gross Margin %
For the Farm Products subindustry, S&W Seed 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.
S&W Seed Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, S&W Seed Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where S&W Seed 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.
S&W Seed Co (NAS:SANW) 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
S&W Seed Co had a gross margin of 30.27% for the quarter that ended in Dec. 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.
S&W Seed Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of S&W Seed Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
S&W Seed Co is a multi-crop, middle-market agricultural company. It is engaged in the breeding, production, and sale of alfalfa seed and sorghum seed. It also has a growing commercial market presence in sunflower and maintains an active stevia development program. The company's seed platform develops and supplies germplasm designed to produce higher yields for farmers worldwide. It produces approximately 500 seed products and has a sale in more than 40 countries. Its geographical segments include the United States, Australia, Saudi Arabia, Mexico, South Africa, and other countries.
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