>
Switch to:

Deere Gross Margin %

: 27.64% (As of Jan. 2022)
View and export this data going back to 1958. Start your Free Trial

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 highest Gross 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 %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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 % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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.



Deere Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Deere's Gross Margin for the fiscal year that ended in Oct. 2021 is calculated as

Gross Margin % (A: Oct. 2021 )=Gross Profit (A: Oct. 2021 ) / Revenue (A: Oct. 2021 )
=13271 / 43582
=(Revenue - Cost of Goods Sold) / Revenue
=(43582 - 30311) / 43582
=30.45 %

Deere's Gross Margin for the quarter that ended in Jan. 2022 is calculated as


Gross Margin % (Q: Jan. 2022 )=Gross Profit (Q: Jan. 2022 ) / Revenue (Q: Jan. 2022 )
=2645 / 9569
=(Revenue - Cost of Goods Sold) / Revenue
=(9569 - 6924) / 9569
=27.64 %

* 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 Business Description

Deere logo
Industry
Address
One John Deere Place, Moline, IL, USA, 61265
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.
Executives
Howze Marc A officer: Group Pres., Life Sol & CAO DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Reed Cory J officer: Pres, Ag & Turf Prod & Prec Ag DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Von Pentz Markwart officer: PresAg Turf Small Ag & Turf DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Kalathur Rajesh officer: President, JD Financial & CIO DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Stone John H officer: Pres., WW Const & For & Pow Sy ONE JOHN DEERE PLACE MOLINE IL 61265
Field James M. officer: Pres., C&F Division DEERE & COMPANY ONE JOHN DEERE PLACE MOLINE IL 61265
Erwin Tami A. director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Holliday Charles O Jr director 1007 MARKET ST WILMINGTON DE 19898
Jones Clayton M director 400 COLLINS ROAD NE CEDAR RAPIDS IA 52498
Smith Sherry M director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SMITH SHERRY M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Page Gregory R director EATON CENTER 1111 SUPERIOR AVENUE CLEVELAND OH 44114
Heuberger Alan Cletus director 2365 CARILLON POINT KIRKLAND WA 98033
Talton Sheila director C/O ACCO BRANDS CORPORATION 300 TOWER PARKWAY LINCOLNSHIRE IL 60201
Jain Dipak C director 130 EAST RANDOLPH DRIVE CHICAGO IL 60601
Stockton Dmitri L director 777 LONG RIDGE ROAD SYNCHRONY FINANCIAL C/O CORP. SECRETARY STAMFORD CT 06902

Deere Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)