Gross Margin % is calculated as gross profit divided by its revenue. Ingredion's Gross Profit for the
three
months ended in Dec. 2023 was $400 Mil. Ingredion's Revenue for the
three
months ended in Dec. 2023 was $1,921 Mil. Therefore, Ingredion's Gross Margin % for the quarter that ended in Dec. 2023 was 20.82%.
Warning Sign:
Ingredion Inc gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Ingredion's Gross Margin % or its related term are showing as below:
INGR'
s Gross Margin % Range Over the Past 10 Years
Min: 18.59 Med: 21.19 Max: 23.57
Current: 21.43
During the past 13 years, the highestGross Margin % of Ingredion was 23.57%. The lowest was 18.59%. And the median was 21.19%.
INGR's Gross Margin % is ranked worse than 58.54% of 1809
companies
in the Consumer Packaged Goods industry
Industry Median: 25.04
vs INGR: 21.43
Ingredion had a gross margin of 20.82% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ingredion was -1.50% per year.
Ingredion Gross Margin % Historical Data
The historical data trend for Ingredion'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 Ingredion's Gross Margin %
For the Packaged Foods subindustry, Ingredion'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.
Ingredion's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Ingredion's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ingredion'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.
Ingredion (NYSE:INGR) 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
Ingredion had a gross margin of 20.82% 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.
Ingredion Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ingredion's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ingredion is an ingredients provider for the food, beverage, brewing, and animal nutrition industries. The company processes corn, tapioca, potatoes, stevia, grains, fruits, gums, and vegetables into value-added ingredients. The company has two main product lines: specialty and core ingredients. Specialty ingredients includes starch-based texturizers, natural alternative sweeteners such as stevia, and plant proteins for alternative dairy and snacks. Core ingredients includes sweeteners, such as high-fructose corn syrup, and commodity starches, such as those used for sustainable packaging.
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