Indigo Books & Music Inc gross margin has been in long-term decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Indigo Books & Music's Gross Margin % or its related term are showing as below:
TSX:IDG'
s Gross Margin % Range Over the Past 10 Years
Min: 37.23 Med: 42.63 Max: 44.56
Current: 38.87
During the past 13 years, the highestGross Margin % of Indigo Books & Music was 44.56%. The lowest was 37.23%. And the median was 42.63%.
TSX:IDG's Gross Margin % is ranked better than 54.56% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 36.74
vs TSX:IDG: 38.87
Indigo Books & Music had a gross margin of 38.05% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Indigo Books & Music was -1.80% per year.
Indigo Books & Music Gross Margin % Historical Data
The historical data trend for Indigo Books & Music'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 Indigo Books & Music's Gross Margin %
For the Specialty Retail subindustry, Indigo Books & Music'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.
Indigo Books & Music's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Indigo Books & Music's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Indigo Books & Music'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.
Indigo Books & Music (TSX:IDG) 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
Indigo Books & Music had a gross margin of 38.05% 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.
Indigo Books & Music Gross Margin % Related Terms
Thank you for viewing the detailed overview of Indigo Books & Music's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Indigo Books & Music (TSX:IDG) Business Description
Indigo Books & Music Inc is a Canada-based book, gift, and toy retailer. It operates a chain of retail bookstores across all Canada, including approximately 87 superstores under Indigo and Chapters banners names as well as over 80 small format stores under the banners Coles, Indigospirit, SmithBooks, and The Book company. Its digital platforms sell expanded selection of books, gifts, toys, and paper products. It also has interest in Calendar Club of Canada, which operates seasonal kiosks and year-round stores in shopping malls across Canada. The company generates its revenue from Superstores, Small format stores, Online, and Others.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSX:IDG has been successfully added to your 