Gross Margin % is calculated as gross profit divided by its revenue. Pricesmart's Gross Profit for the
three
months ended in Feb. 2024 was $221 Mil. Pricesmart's Revenue for the
three
months ended in Feb. 2024 was $1,292 Mil. Therefore, Pricesmart's Gross Margin % for the quarter that ended in Feb. 2024 was 17.11%.
The historical rank and industry rank for Pricesmart's Gross Margin % or its related term are showing as below:
PSMT'
s Gross Margin % Range Over the Past 10 Years
Min: 15.68 Med: 16.25 Max: 17.81
Current: 17.13
During the past 13 years, the highestGross Margin % of Pricesmart was 17.81%. The lowest was 15.68%. And the median was 16.25%.
PSMT's Gross Margin % is ranked worse than 67.85% of 311
companies
in the Retail - Defensive industry
Industry Median: 22.74
vs PSMT: 17.13
Pricesmart had a gross margin of 17.11% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Pricesmart was 1.30% per year.
Pricesmart Gross Margin % Historical Data
The historical data trend for Pricesmart'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 Pricesmart's Gross Margin %
For the Discount Stores subindustry, Pricesmart'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.
Pricesmart's Gross Margin % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Pricesmart's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pricesmart'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.
Pricesmart (NAS:PSMT) 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
Pricesmart had a gross margin of 17.11% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage
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.
Pricesmart Gross Margin % Related Terms
Thank you for viewing the detailed overview of Pricesmart's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Pricesmart Inc is principally engaged in operating U.S.-style membership shopping warehouse clubs that offer consumer goods at low prices. The company is headquartered in San Diego, California, United States, and operates stores in Latin America and the Caribbean, with Central America contributing over half of its net warehouse club sales. The company's revenue consists of net warehouse club sales from merchandise sales, membership income from annual membership fees, export sales, and other income, with net warehouse club sales accounting for the majority of the company's total revenue.
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