Gross Margin % is calculated as gross profit divided by its revenue. Oil-Dri of America's Gross Profit for the
three
months ended in Jan. 2024 was $30.9 Mil. Oil-Dri of America's Revenue for the
three
months ended in Jan. 2024 was $105.7 Mil. Therefore, Oil-Dri of America's Gross Margin % for the quarter that ended in Jan. 2024 was 29.28%.
Warning Sign:
Oil-Dri Corp of America gross margin has been in long-term decline. The average rate of decline per year is -3.8%.
The historical rank and industry rank for Oil-Dri of America's Gross Margin % or its related term are showing as below:
ODC'
s Gross Margin % Range Over the Past 10 Years
Min: 17.93 Med: 23.98 Max: 29.41
Current: 27.87
During the past 13 years, the highestGross Margin % of Oil-Dri of America was 29.41%. The lowest was 17.93%. And the median was 23.98%.
ODC's Gross Margin % is ranked better than 63.58% of 1510
companies
in the Chemicals industry
Industry Median: 22.315
vs ODC: 27.87
Oil-Dri of America had a gross margin of 29.28% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Oil-Dri of America was -3.80% per year.
Oil-Dri of America Gross Margin % Historical Data
The historical data trend for Oil-Dri of America'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.
Competitive Comparison of Oil-Dri of America's Gross Margin %
For the Specialty Chemicals subindustry, Oil-Dri of America'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.
Oil-Dri of America's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Oil-Dri of America's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Oil-Dri of America'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.
Oil-Dri of America (NYSE:ODC) 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
Oil-Dri of America had a gross margin of 29.28% for the quarter that ended in Jan. 2024 => 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.
Oil-Dri of America Gross Margin % Related Terms
Thank you for viewing the detailed overview of Oil-Dri of America's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Oil-Dri of America (Oil-Dri of America) Business Description
Oil-Dri Corp of America develops, manufactures, and markets sorbent products made predominantly from clay. Its absorbent offerings, which draw liquid up, include cat litter, floor products, toxin control substances for livestock, and agricultural chemical carriers. The company has two segments based on the different characteristics of two primary customer groups namely Retail and Wholesale Products Group and Business to Business Products Group. The company's products are sold under various brands such as Cat's Pride, Jonny Cat, Amlan, Agsorb, Verge, Pure-Flo, and Ultra-Clear.
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