Gross Margin % is calculated as gross profit divided by its revenue. Deere's Gross Profit for the
three
months ended in Jan. 2022 was $2,645 Mil. Deere's Revenue for the
three
months ended in Jan. 2022 was $9,569 Mil. Therefore, Deere's Gross Margin % for the quarter that ended in Jan. 2022 was 27.64%.
The historical rank and industry rank for Deere's Gross Margin % or its related term are showing as below:
DE'
s Gross Margin % Range Over the Past 10 Years
Min: 26.66 Med: 28.03 Max: 30.45
Current: 29.25
During the past 13 years, the highestGross Margin % of Deere was 30.45%. The lowest was 26.66%. And the median was 28.03%.
DE's Gross Margin % is ranked better than 73.44% of 192
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 22.46
vs DE: 29.25
Deere had a gross margin of 27.64% for the quarter that ended in Jan. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Deere was 1.70% per year.
Deere Gross Margin % Historical Data
The historical data trend for Deere'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.
Deere Annual Data
Trend
Oct12
Oct13
Oct14
Oct15
Oct16
Oct17
Oct18
Oct19
Oct20
Oct21
Gross Margin %
28.10
27.11
26.85
28.78
30.45
Deere Quarterly Data
Apr17
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Gross Margin %
33.32
32.03
32.18
24.47
27.64
Competitive Comparison
For the Farm & Heavy Construction Machinery subindustry, Deere'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.
Deere Gross Margin % Distribution
For the Farm & Heavy Construction Machinery industry and Industrials sector, Deere's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Deere'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.
Deere (NYSE:DE) 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
Deere had a gross margin of 27.64% for the quarter that ended in Jan. 2022 => 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.
Deere Gross Margin % Related Terms
Thank you for viewing the detailed overview of Deere's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Deere is the world's leading manufacturer of agricultural equipment, producing some of the most recognizable machines in the heavy machinery industry. The company is divided into four reportable segments: production and precision agriculture, small agriculture and turf, construction and forestry, and John Deere Capital. Its products are available through a robust dealer network, which includes over 1,900 dealer locations in North America and approximately 3,700 locations globally. John Deere Capital provides retail financing for machinery to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Deere product sales.
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