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Gates Industrial Gross Margin %

: 38.00% (As of Dec. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Gates Industrial's Gross Profit for the three months ended in Dec. 2020 was $302 Mil. Gates Industrial's Revenue for the three months ended in Dec. 2020 was $794 Mil. Therefore, Gates Industrial's Gross Margin % for the quarter that ended in Dec. 2020 was 38.00%.


NYSE:GTES' s Gross Margin % Range Over the Past 10 Years
Min: 33.76   Med: 37.74   Max: 40.04
Current: 37.05

33.76
40.04

During the past 7 years, the highest Gross Margin % of Gates Industrial was 40.04%. The lowest was 33.76%. And the median was 37.74%.

NYSE:GTES's Gross Margin % is ranked higher than
75% of the 2537 Companies
in the Industrial Products industry.

( Industry Median: 26.59 vs. NYSE:GTES: 37.05 )

Gates Industrial had a gross margin of 38.00% for the quarter that ended in Dec. 2020 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Gates Industrial was -0.70% per year.


Gates Industrial Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

* Premium members only.

Gates Industrial Annual Data
Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Gross Margin % Premium Member Only Premium Member Only 38.62 40.04 39.75 37.01 37.05

Gates Industrial Quarterly Data
Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
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 36.02 36.02 35.30 38.42 38.00

Competitive Comparison
* 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.


Gates Industrial Gross Margin % Distribution

* The bar in red indicates where Gates Industrial's Gross Margin % falls into.



Gates Industrial Gross Margin % Calculation

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

Gates Industrial's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )=Gross Profit (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=1034.7 / 2793
=(Revenue - Cost of Goods Sold) / Revenue
=(2793 - 1758.3) / 2793
=37.05 %

Gates Industrial's Gross Margin for the quarter that ended in Dec. 2020 is calculated as


Gross Margin % (Q: Dec. 2020 )=Gross Profit (Q: Dec. 2020 ) / Revenue (Q: Dec. 2020 )
=301.8 / 794.2
=(Revenue - Cost of Goods Sold) / Revenue
=(794.2 - 492.4) / 794.2
=38.00 %

* All numbers are in millions except for per share data and ratio. All numbers 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.


Gates Industrial  (NYSE:GTES) 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

Gates Industrial had a gross margin of 38.00% for the quarter that ended in Dec. 2020 => 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.


Gates Industrial Gross Margin % Related Terms


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