Market Cap : 1.28 B | Enterprise Value : 1.86 B | PE Ratio : 66.71 | PB Ratio : 1.57 |
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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:
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 thanSteelcase 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.
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.
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.
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.
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.
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
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.
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.
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 |
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