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Stanley Black & Decker (Stanley Black & Decker) Gross Margin %

: 29.56% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Stanley Black & Decker's Gross Profit for the three months ended in Dec. 2023 was $1,104 Mil. Stanley Black & Decker's Revenue for the three months ended in Dec. 2023 was $3,737 Mil. Therefore, Stanley Black & Decker's Gross Margin % for the quarter that ended in Dec. 2023 was 29.56%.

Warning Sign:

Stanley Black & Decker Inc gross margin has been in long-term decline. The average rate of decline per year is -6.8%.


The historical rank and industry rank for Stanley Black & Decker's Gross Margin % or its related term are showing as below:

SWK' s Gross Margin % Range Over the Past 10 Years
Min: 24.92   Med: 34.22   Max: 36.85
Current: 24.92


During the past 13 years, the highest Gross Margin % of Stanley Black & Decker was 36.85%. The lowest was 24.92%. And the median was 34.22%.

SWK's Gross Margin % is ranked worse than
54.92% of 2935 companies
in the Industrial Products industry
Industry Median: 26.44 vs SWK: 24.92

Stanley Black & Decker had a gross margin of 29.56% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Stanley Black & Decker was -6.80% per year.


Stanley Black & Decker Gross Margin % Historical Data

The historical data trend for Stanley Black & Decker'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.

Stanley Black & Decker 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 32.78 33.74 33.32 25.28 24.92

Stanley Black & Decker 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 18.90 21.25 22.41 26.82 29.56

Competitive Comparison

For the Tools & Accessories subindustry, Stanley Black & Decker'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.


Stanley Black & Decker Gross Margin % Distribution

For the Industrial Products industry and Industrials sector, Stanley Black & Decker's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Stanley Black & Decker's Gross Margin % falls into.



Stanley Black & Decker Gross Margin % Calculation

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

Stanley Black & Decker'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 )
=3932.6 / 15781.1
=(Revenue - Cost of Goods Sold) / Revenue
=(15781.1 - 11848.5) / 15781.1
=24.92 %

Stanley Black & Decker'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 )
=1104.4 / 3736.5
=(Revenue - Cost of Goods Sold) / Revenue
=(3736.5 - 2632.1) / 3736.5
=29.56 %

* 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.


Stanley Black & Decker  (NYSE:SWK) 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

Stanley Black & Decker had a gross margin of 29.56% 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.


Stanley Black & Decker Gross Margin % Related Terms

Thank you for viewing the detailed overview of Stanley Black & Decker's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Stanley Black & Decker (Stanley Black & Decker) Business Description

Address
1000 Stanley Drive, New Britain, CT, USA, 06053
Stanley Black & Decker Inc is a manufacturer of hand and power tools. The company operates in two reportable segments namely Tools and Outdoor and Industrial. It generates maximum revenue from the Tools and Outdoor segment. The Tools and Outdoor segment is comprised of the Power Tools Group (PTG), Hand Tools, Accessories and Storage (HTAS), and Outdoor Power Equipment (Outdoor) businesses. Geographically, it derives a majority of its revenue from the United States.
Executives
Graham Robinson officer: SVP & President of Industrial 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Susan K Carter director C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Janet Link officer: SVP, General Counsel & Sec'y 6501 LEGACY DRIVE, PLANO TX 75024
Christopher John Nelson officer: Chief Operating Officer 13995 PASTEUR BOULEVARD, PALM BEACH GARDENS FL 33418
Tamer Abuaita officer: SVP, Global Supply Chain C/O SOVOS BRANDS, INC., 168 CENTENNIAL PARKWAY, SUITE 200, LOUISVILLE CO 80027
Patrick D Hallinan officer: EVP, Chief Financial Officer FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015
John Lucas officer: SVP, Chief HR Officer 200 INNOVATION WAY, AKRON OH 44316
Walburger Corbin officer: Interim CFO 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Scot Greulach officer: Chief Accounting Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Robert J Manning director 1201 THIRD AVE, STE 4900, SEATTLE WA 98101
Andrea J. Ayers director STANLEY BLACK & DECKER, IN., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Jocelyn Belisle officer: VP, Chief Accounting Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Stephen Subasic officer: SVP, Chief HR Officer 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Adrian V Mitchell director C/O MACY'S, INC., 151 WEST 34TH STREET, NEW YORK NY 10001
Jaime A Ramirez officer: Pres.Construct.&DIY, Latin Am. 1000 STANLEY DRIVE, NEW BRITAIN CT 06053