The historical rank and industry rank for Tractor Supply Co's Gross Margin % or its related term are showing as below:
TSCO'
s Gross Margin % Range Over the Past 10 Years
Min: 34.15 Med: 34.4 Max: 35.92
Current: 35.92
During the past 13 years, the highestGross Margin % of Tractor Supply Co was 35.92%. The lowest was 34.15%. And the median was 34.40%.
TSCO's Gross Margin % is ranked worse than 51.64% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 36.74
vs TSCO: 35.92
Tractor Supply Co had a gross margin of 35.33% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tractor Supply Co was 0.90% per year.
Tractor Supply Co Gross Margin % Historical Data
The historical data trend for Tractor Supply 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 Tractor Supply Co's Gross Margin %
For the Specialty Retail subindustry, Tractor Supply 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.
Tractor Supply Co's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Tractor Supply Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tractor Supply 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.
Tractor Supply Co (NAS:TSCO) 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
Tractor Supply Co had a gross margin of 35.33% 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.
Tractor Supply Co Gross Margin % Related Terms
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Tractor Supply Co (Tractor Supply Co) Business Description
Tractor Supply is the largest operator of retail farm and ranch stores in the United States. The company targets recreational farmers and ranchers and has little exposure to commercial and industrial farm operations. Currently, the company operates 2,198 of its namesake banners in 49 states, including 81 Orscheln Farm and Home stores (to be converted to Tractor Supply banners), along with 195 Petsense by Tractor Supply stores. Stores are generally concentrated in rural communities, as opposed to urban and suburban areas. In fiscal 2022, revenue consisted primarily of livestock and pet (50%), hardware, tools, and truck (19%), and seasonal gift and toy (21%).
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