G6 Materials (TSXV:GGG) Gross Margin % : -2.94% (As of Nov. 2023)

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What is G6 Materials Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. G6 Materials's Gross Profit for the three months ended in Nov. 2023 was C$-0.01 Mil. G6 Materials's Revenue for the three months ended in Nov. 2023 was C$0.41 Mil. Therefore, G6 Materials's Gross Margin % for the quarter that ended in Nov. 2023 was -2.94%.

Warning Sign:

G6 Materials Corp gross margin has been in long-term decline. The average rate of decline per year is -23.8%.

The historical rank and industry rank for G6 Materials's Gross Margin % or its related term are showing as below:

TSXV:GGG' s Gross Margin % Range Over the Past 10 Years
Min: -14 Med: 26.66 Max: 67.89
Current: -4.59

During the past 13 years, the highest Gross Margin % of G6 Materials was 67.89%. The lowest was -14.00%. And the median was 26.66%.

TSXV:GGG's Gross Margin % is ranked worse than
97.81% of 1510 companies
in the Chemicals industry
Industry Median: 22.315 vs TSXV:GGG: -4.59

G6 Materials had a gross margin of -2.94% for the quarter that ended in Nov. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for G6 Materials was -23.80% per year.

G6 Materials Gross Margin % Historical Data

The historical data trend for G6 Materials'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.

G6 Materials Gross Margin % Chart

G6 Materials Annual Data

Trend

Jul14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Gross Margin %

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62.59

21.86

26.66

40.44

12.65

G6 Materials Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Gross Margin %	Get a 7-Day Free Trial															40.85	47.49	-95.52	27.48	-2.94

Competitive Comparison of G6 Materials's Gross Margin %

For the Specialty Chemicals subindustry, G6 Materials'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.

G6 Materials's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, G6 Materials's Gross Margin % distribution charts can be found below:

* The bar in red indicates where G6 Materials's Gross Margin % falls into.

G6 Materials Gross Margin % Calculation

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

G6 Materials's Gross Margin for the fiscal year that ended in May. 2023 is calculated as

Gross Margin % (A: May. 2023 )	=	Gross Profit (A: May. 2023 )	/	Revenue (A: May. 2023 )
	=	0.3	/	2.095
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2.095 - 1.83)	/	2.095
	=	12.65 %

G6 Materials's Gross Margin for the quarter that ended in Nov. 2023 is calculated as

Gross Margin % (Q: Nov. 2023 )	=	Gross Profit (Q: Nov. 2023 )	/	Revenue (Q: Nov. 2023 )
	=	-0	/	0.408
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.408 - 0.42)	/	0.408
	=	-2.94 %

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.

G6 Materials (TSXV:GGG) 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

G6 Materials had a gross margin of -2.94% for the quarter that ended in Nov. 2023 => 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.

G6 Materials Gross Margin % Related Terms

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G6 Materials (TSXV:GGG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » G6 Materials Corp (TSXV:GGG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

GPHBF:USA G310:Germany

Address

760 Koehler Avenue, Suite 2, Ronkonkoma, NY, USA, 11779

Website

https://www.g6-materials.com

G6 Materials Corp is engaged in the development, manufacture, and sale of proprietary composites and coatings based on graphene and other advanced materials. The company's products include high-performance resins, composites, R&D materials, fine organic chemicals, and conductive adhesives.