Gross Margin % is calculated as gross profit divided by its revenue. Matson's Gross Profit for the
three
months ended in Dec. 2023 was $145 Mil. Matson's Revenue for the
three
months ended in Dec. 2023 was $789 Mil. Therefore, Matson's Gross Margin % for the quarter that ended in Dec. 2023 was 18.32%.
The historical rank and industry rank for Matson's Gross Margin % or its related term are showing as below:
MATX'
s Gross Margin % Range Over the Past 10 Years
Min: 14.76 Med: 18.29 Max: 35.26
Current: 20.16
During the past 13 years, the highestGross Margin % of Matson was 35.26%. The lowest was 14.76%. And the median was 18.29%.
MATX's Gross Margin % is ranked better than 50.16% of 945
companies
in the Transportation industry
Industry Median: 20.03
vs MATX: 20.16
Matson had a gross margin of 18.32% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Matson was 13.50% per year.
Matson Gross Margin % Historical Data
The historical data trend for Matson'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.
For the Marine Shipping subindustry, Matson'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.
Matson's Gross Margin % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Matson's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Matson'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.
Matson (NYSE:MATX) 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
Matson had a gross margin of 18.32% 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.
Matson Gross Margin % Related Terms
Thank you for viewing the detailed overview of Matson's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Matson Inc is engaged in providing ocean transportation and logistics services. The business segments of the company are ocean transportation which provides ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, California, Okinawa, and different islands in the South Pacific, and logistics which offers long haul and regional highway trucking services, warehousing and distribution services, supply chain management, and freight forwarding services. The firm generates the majority of its revenue from ocean transportation.
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