PPG Industries (PPG Industries) Gross Margin % : 43.28% (As of Mar. 2024)

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PPG Industries Gross Margin % Definition

Gross Margin % is calculated as gross profit divided by its revenue. PPG Industries's Gross Profit for the three months ended in Mar. 2024 was $1,866 Mil. PPG Industries's Revenue for the three months ended in Mar. 2024 was $4,311 Mil. Therefore, PPG Industries's Gross Margin % for the quarter that ended in Mar. 2024 was 43.28%.

Warning Sign:

PPG Industries Inc gross margin has been in long-term decline. The average rate of decline per year is -1.7%.

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

PPG' s Gross Margin % Range Over the Past 10 Years
Min: 37.14 Med: 43.22 Max: 46.29
Current: 41.72

During the past 13 years, the highest Gross Margin % of PPG Industries was 46.29%. The lowest was 37.14%. And the median was 43.22%.

PPG's Gross Margin % is ranked better than
86.23% of 1510 companies
in the Chemicals industry
Industry Median: 22.315 vs PPG: 41.72

PPG Industries had a gross margin of 43.28% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for PPG Industries was -1.70% per year.

PPG Industries Gross Margin % Historical Data

The historical data trend for PPG Industries'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.

PPG Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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42.87

43.78

38.78

37.14

41.11

PPG Industries Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															40.73	41.17	40.74	41.82	43.28

Competitive Comparison

For the Specialty Chemicals subindustry, PPG Industries'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.

PPG Industries Gross Margin % Distribution

For the Chemicals industry and Basic Materials sector, PPG Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where PPG Industries's Gross Margin % falls into.

PPG Industries Gross Margin % Calculation

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

PPG Industries's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	7501	/	18246
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(18246 - 10745)	/	18246
	=	41.11 %

PPG Industries's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	1866	/	4311
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4311 - 2445)	/	4311
	=	43.28 %

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.

PPG Industries (NYSE:PPG) 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

PPG Industries had a gross margin of 43.28% for the quarter that ended in Mar. 2024 => 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.

PPG Industries Gross Margin % Related Terms

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PPG Industries (PPG Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » PPG Industries Inc (NYSE:PPG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

PPG:Mexico PPQ:Germany

Address

One PPG Place, Pittsburgh, PA, USA, 15272

Website

https://www.ppg.com

PPG is a global producer of coatings. The company is the world's largest producer of coatings after the purchase of selected Akzo Nobel assets. PPG's products are sold to a wide variety of end users, including the automotive, aerospace, construction, and industrial markets. The company has a footprint in many regions around the globe, with less than half of sales coming from North America in recent years. PPG is focused on its coatings and specialty products and expansion into emerging regions, as exemplified by the Comex acquisition.

Executives

Iii Chris Roberts	director	1716 LOCUST ST. LS-175, 7TH FLOOR, DES MOINES IA 50309
Vincent J Morales	officer: Senior VP & CFO	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Michael H Mcgarry	officer: Senior Vice President	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Chancey E. Hagerty	officer: Sr. VP, Auto. Refinish Ctgs.	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Karl Henrik Bergstrom	officer: Sr.VP, Arch Ctgs LA, EMEA, AP	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Kevin D. Braun	officer: Sr. VP, Industrial Coatings	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Anne M. Foulkes	officer: Sr. VP, Gen. Counsel & Secrtry	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Rebecca B. Liebert	officer: Sr. VP, Automotive Coatings	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Brian Richard Williams	officer: Acting Controller	ONE PPG PLACE, PITTSBURGH PA 15272
Timothy M Knavish	officer: Sr. VP, Automotive Coatings	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Guillermo Novo	director	AIR PRODUCTS AND CHEMICALS, INC., 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Michael Nally	director	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
William E Schaupp	officer: Assistant Controller (PAO)	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Kathleen Ligocki	director	3296 PINE LAKE ROAD, WEST BLOOMFIELD MI 48324
Vadlamannati Ramaprasad	officer: Sr. VP, Protect. & Marine Ctgs	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272