Gross Margin % is calculated as gross profit divided by its revenue. Owens-Corning's Gross Profit for the
three
months ended in Dec. 2023 was $615 Mil. Owens-Corning's Revenue for the
three
months ended in Dec. 2023 was $2,304 Mil. Therefore, Owens-Corning's Gross Margin % for the quarter that ended in Dec. 2023 was 26.69%.
The historical rank and industry rank for Owens-Corning's Gross Margin % or its related term are showing as below:
OC'
s Gross Margin % Range Over the Past 10 Years
Min: 18.56 Med: 23.7 Max: 27.73
Current: 27.73
During the past 13 years, the highestGross Margin % of Owens-Corning was 27.73%. The lowest was 18.56%. And the median was 23.70%.
OC's Gross Margin % is ranked better than 66.19% of 1609
companies
in the Construction industry
Industry Median: 19.08
vs OC: 27.73
Owens-Corning had a gross margin of 26.69% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Owens-Corning was 4.60% per year.
Owens-Corning Gross Margin % Historical Data
The historical data trend for Owens-Corning'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 Building Products & Equipment subindustry, Owens-Corning'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.
Owens-Corning Gross Margin % Distribution
For the Construction industry and Industrials sector, Owens-Corning's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Owens-Corning'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.
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
Owens-Corning had a gross margin of 26.69% for the quarter that ended in Dec. 2023 => 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.
Owens-Corning Gross Margin % Related Terms
Thank you for viewing the detailed overview of Owens-Corning's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Owens-Corning (Owens-Corning) Business Description
Owens-Corning Inc is a manufacturer of glass fiber utilized in composites and building materials. It has an integrated business model with three reportable segments: Composites, Insulation, and Roofing. The company generates maximum revenue from the Insulation segment. Its Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing, and accessories. It also manufactures and sells glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation used in above- and below-grade construction applications.
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