Gross Margin % is calculated as gross profit divided by its revenue. AutoNation's Gross Profit for the
three
months ended in Dec. 2023 was $1,215 Mil. AutoNation's Revenue for the
three
months ended in Dec. 2023 was $6,767 Mil. Therefore, AutoNation's Gross Margin % for the quarter that ended in Dec. 2023 was 17.96%.
The historical rank and industry rank for AutoNation's Gross Margin % or its related term are showing as below:
AN'
s Gross Margin % Range Over the Past 10 Years
Min: 15.33 Med: 16.19 Max: 19.51
Current: 19.04
During the past 13 years, the highestGross Margin % of AutoNation was 19.51%. The lowest was 15.33%. And the median was 16.19%.
AN's Gross Margin % is ranked worse than 50.75% of 1267
companies
in the Vehicles & Parts industry
Industry Median: 19.36
vs AN: 19.04
AutoNation had a gross margin of 17.96% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AutoNation was 4.40% per year.
AutoNation Gross Margin % Historical Data
The historical data trend for AutoNation'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 AutoNation's Gross Margin %
For the Auto & Truck Dealerships subindustry, AutoNation'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.
AutoNation's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, AutoNation's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AutoNation'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.
AutoNation (NYSE:AN) 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
AutoNation had a gross margin of 17.96% 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.
AutoNation Gross Margin % Related Terms
Thank you for viewing the detailed overview of AutoNation's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
AutoNation is the second largest automotive dealer in the United States, with 2022 revenue of $27 billion and over 250 dealerships, plus 53 collision centers. The firm also has 16 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors all across 20 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) spun off its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.
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