Gross Margin % is calculated as gross profit divided by its revenue. Olin's Gross Profit for the
three
months ended in Dec. 2023 was $184 Mil. Olin's Revenue for the
three
months ended in Dec. 2023 was $1,615 Mil. Therefore, Olin's Gross Margin % for the quarter that ended in Dec. 2023 was 11.38%.
The historical rank and industry rank for Olin's Gross Margin % or its related term are showing as below:
OLN'
s Gross Margin % Range Over the Past 10 Years
Min: 6.66 Med: 14.53 Max: 25.75
Current: 17.06
During the past 13 years, the highestGross Margin % of Olin was 25.75%. The lowest was 6.66%. And the median was 14.53%.
OLN's Gross Margin % is ranked worse than 65.36% of 1510
companies
in the Chemicals industry
Industry Median: 22.31
vs OLN: 17.06
Olin had a gross margin of 11.38% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Olin was 11.70% per year.
Olin Gross Margin % Historical Data
The historical data trend for Olin'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 Specialty Chemicals subindustry, Olin'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.
Olin's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Olin's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Olin'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.
Olin (NYSE:OLN) 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
Olin had a gross margin of 11.38% 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.
Olin Gross Margin % Related Terms
Thank you for viewing the detailed overview of Olin's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Olin Corp manufactures and sells a variety of chemicals and chemical-based products. The company organizes itself into three segments based on the product type. The Chlor alkali products and Vinyls segment, which generates the majority of revenue, sells chlorine and caustic soda, which are used in a variety of industries including cosmetics, textiles, crop protection, and fire protection products. The Epoxy segment sells epoxy resins used in paints and coatings. The Winchester segment sells sporting ammunition and ammunition accessories under the Winchester brand. The majority of revenue comes from the United States.
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