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Acadian Timber (Acadian Timber) Gross Margin %

: 27.58% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Acadian Timber's Gross Profit for the three months ended in Dec. 2023 was $4.90 Mil. Acadian Timber's Revenue for the three months ended in Dec. 2023 was $17.75 Mil. Therefore, Acadian Timber's Gross Margin % for the quarter that ended in Dec. 2023 was 27.58%.


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

ACAZF' s Gross Margin % Range Over the Past 10 Years
Min: 30.48   Med: 32.53   Max: 39.36
Current: 31.65


During the past 13 years, the highest Gross Margin % of Acadian Timber was 39.36%. The lowest was 30.48%. And the median was 32.53%.

ACAZF's Gross Margin % is ranked better than
68.55% of 283 companies
in the Forest Products industry
Industry Median: 19.91 vs ACAZF: 31.65

Acadian Timber had a gross margin of 27.58% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Acadian Timber was -0.70% per year.


Acadian Timber Gross Margin % Historical Data

The historical data trend for Acadian Timber'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.

Acadian Timber Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 32.77 33.10 32.17 30.48 31.65

Acadian Timber Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 26.22 32.36 37.52 30.12 27.58

Competitive Comparison

For the Lumber & Wood Production subindustry, Acadian Timber'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.


Acadian Timber Gross Margin % Distribution

For the Forest Products industry and Basic Materials sector, Acadian Timber's Gross Margin % distribution charts can be found below:

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



Acadian Timber Gross Margin % Calculation

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

Acadian Timber'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 )
=22.1 / 69.676
=(Revenue - Cost of Goods Sold) / Revenue
=(69.676 - 47.626) / 69.676
=31.65 %

Acadian Timber's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=4.9 / 17.751
=(Revenue - Cost of Goods Sold) / Revenue
=(17.751 - 12.855) / 17.751
=27.58 %

* 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.


Acadian Timber  (OTCPK:ACAZF) 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

Acadian Timber had a gross margin of 27.58% 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.


Acadian Timber Gross Margin % Related Terms

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Acadian Timber (Acadian Timber) Business Description

Traded in Other Exchanges
Address
365 Canada Road, Edmundston, NB, CAN, E3V 1W2
Acadian Timber Corp is a Canada-based supplier of primary forest products in Eastern Canada and the Northeastern United States. The company's operating segments include NB Timberlands and Maine Timberlands. It generates maximum revenue from the NB Timberlands segment. The company's product includes softwood and hardwood sawlogs, pulpwood and biomass by-products.