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On Holding AG Gross Margin %

: 51.80% (As of Mar. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. On Holding AG's Gross Profit for the three months ended in Mar. 2022 was $131.3 Mil. On Holding AG's Revenue for the three months ended in Mar. 2022 was $253.6 Mil. Therefore, On Holding AG's Gross Margin % for the quarter that ended in Mar. 2022 was 51.80%.


The historical rank and industry rank for On Holding AG's Gross Margin % or its related term are showing as below:

ONON' s Gross Margin % Range Over the Past 10 Years
Min: 53.58   Med: 54.34   Max: 59.38
Current: 57.54


During the past 3 years, the highest Gross Margin % of On Holding AG was 59.38%. The lowest was 53.58%. And the median was 54.34%.

ONON's Gross Margin % is ranked better than
83.73% of 1100 companies
in the Retail - Cyclical industry
Industry Median: 37.59 vs ONON: 57.54

On Holding AG had a gross margin of 51.80% for the quarter that ended in Mar. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for On Holding AG was 0.00% per year.


On Holding AG Gross Margin % Historical Data

The historical data trend for On Holding AG'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.

On Holding AG Annual Data
Trend Dec19 Dec20 Dec21
Gross Margin %
53.58 54.34 59.38

On Holding AG Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only 57.58 60.75 60.21 58.51 51.80

Competitive Comparison

For the Apparel Retail subindustry, On Holding AG'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.

   

On Holding AG Gross Margin % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, On Holding AG's Gross Margin % distribution charts can be found below:

* The bar in red indicates where On Holding AG's Gross Margin % falls into.



On Holding AG Gross Margin % Calculation

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

On Holding AG's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=467.2 / 786.7437567861
=(Revenue - Cost of Goods Sold) / Revenue
=(786.7437567861 - 319.54940282302) / 786.7437567861
=59.38 %

On Holding AG's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=131.3 / 253.58403270927
=(Revenue - Cost of Goods Sold) / Revenue
=(253.58403270927 - 122.23692704971) / 253.58403270927
=51.80 %

* 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.


On Holding AG  (NYSE:ONON) 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

On Holding AG had a gross margin of 51.80% for the quarter that ended in Mar. 2022 => Durable 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.


On Holding AG Gross Margin % Related Terms

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On Holding AG Business Description

On Holding AG logo
Traded in Other Exchanges
N/A
Address
Pfingstweidstrasse 106, Zurich, CHE, 8005
On Holding AG is a premium performance sports brand rooted in technology, design, and impact. Its shoe, apparel, and accessories products are designed primarily for athletic use, casual, or leisure purposes. It does not manufacture the products or the raw materials and rely instead on third-party suppliers and contract manufacturers.

On Holding AG Headlines

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