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Steelcase Gross Margin %

: 25.87% (As of May. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Steelcase's Gross Profit for the three months ended in May. 2022 was $192 Mil. Steelcase's Revenue for the three months ended in May. 2022 was $741 Mil. Therefore, Steelcase's Gross Margin % for the quarter that ended in May. 2022 was 25.87%.

Warning Sign:

Steelcase Inc gross margin has been in long-term decline. The average rate of decline per year is -3.5%.


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

SCS' s Gross Margin % Range Over the Past 10 Years
Min: 27   Med: 31.61   Max: 33.23
Current: 27


During the past 13 years, the highest Gross Margin % of Steelcase was 33.23%. The lowest was 27.00%. And the median was 31.61%.

SCS's Gross Margin % is ranked better than
52% of 2694 companies
in the Industrial Products industry
Industry Median: 26.31 vs SCS: 27.00

Steelcase had a gross margin of 25.87% for the quarter that ended in May. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Steelcase was -3.50% per year.


Steelcase Gross Margin % Historical Data

The historical data trend for Steelcase'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.

Steelcase Annual Data
Trend Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 32.90 31.60 32.63 29.38 27.46

Steelcase Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.79 28.53 27.58 26.08 25.87

Competitive Comparison

For the Business Equipment & Supplies subindustry, Steelcase'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.

   

Steelcase Gross Margin % Distribution

For the Industrial Products industry and Industrials sector, Steelcase's Gross Margin % distribution charts can be found below:

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



Steelcase Gross Margin % Calculation

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

Steelcase's Gross Margin for the fiscal year that ended in Feb. 2022 is calculated as

Gross Margin % (A: Feb. 2022 )=Gross Profit (A: Feb. 2022 ) / Revenue (A: Feb. 2022 )
=761.5 / 2772.7
=(Revenue - Cost of Goods Sold) / Revenue
=(2772.7 - 2011.2) / 2772.7
=27.46 %

Steelcase's Gross Margin for the quarter that ended in May. 2022 is calculated as


Gross Margin % (Q: May. 2022 )=Gross Profit (Q: May. 2022 ) / Revenue (Q: May. 2022 )
=191.6 / 740.7
=(Revenue - Cost of Goods Sold) / Revenue
=(740.7 - 549.1) / 740.7
=25.87 %

* 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.


Steelcase  (NYSE:SCS) 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

Steelcase had a gross margin of 25.87% for the quarter that ended in May. 2022 => 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.


Steelcase Gross Margin % Related Terms

Thank you for viewing the detailed overview of Steelcase's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Steelcase Business Description

Steelcase logo
Traded in Other Exchanges
Address
901 44th Street SE, Grand Rapids, MI, USA, 49508
Steelcase Inc is a furniture company primarily based in the United States and has operations in Europe, the Middle East, and Africa. Steelcase markets its products primarily through a network of independent and company-owned dealers. The company operates through the Americas segment, the EMEA segment and the Other category. The Americas segment offers architecture, furniture and technology products is marketed to corporate, government, healthcare, education and retail customers, EMEA segment provides furniture systems, storage and seating solutions.
Executives
Miller Steven Douglas officer: VP, Chief Technology Officer 901 44TH STREET SE GRAND RAPIDS MI 49508
Zondervan Robin L officer: Corporate Controller and CAO 901 44TH STREET SE GRAND RAPIDS MI 49508
Williams Linda K director 901 44TH STREET SE GRAND RAPIDS MI 49508
Flynn Donna K officer: VP, Global Talent Management 901 44TH STREET SE GRAND RAPIDS MI 49508
Schmelter Triona director 2021 SPRING ROAD SUITE 600 OAK BROOK IL 60523
Niemann Jennifer C director 901 44TH STREET SE GRAND RAPIDS MI 49508
Kelsey Todd P. director 55 JEWELERS PARK DRIVE NEENAH WI 54956
Brown Timothy C. E. director 901 44TH STREET SE GRAND RAPIDS MI 49508
Krestakos Robert G officer: VP, Global Operations 901 44TH STREET SE GRAND RAPIDS MI 49508
Lenhardt Terrence J officer: VP, Chief Information Officer 901 44TH STREET SE GRAND RAPIDS MI 49508
Moutrey Gale officer: VP, Communications 901 44TH STREET SE GRAND RAPIDS MI 49508
Khorramian Hamid officer: Senior VP, Global Operations 901 - 44TH STREET, SE GRAND RAPIDS MI 49508
Schmitt Eddy F officer: Senior VP, Americas 901 44TH STREET SE GRAND RAPIDS MI 49508
Alvarez Guillaume M officer: Senior VP, EMEA 901 44TH STREET SE GRAND RAPIDS MI 49508
Ludwig James N officer: VP, Global Design & Prod Eng 901 44TH STREET SE GRAND RAPIDS MI 49508

Steelcase Headlines

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Why Steelcase Stock Fell Today

By Fool 2020-07-01

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