Cannara Biotech (TSXV:LOVE) Gross Margin % : 21.03% (As of Feb. 2024)

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What is Cannara Biotech Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cannara Biotech's Gross Profit for the three months ended in Feb. 2024 was C$4.14 Mil. Cannara Biotech's Revenue for the three months ended in Feb. 2024 was C$19.68 Mil. Therefore, Cannara Biotech's Gross Margin % for the quarter that ended in Feb. 2024 was 21.03%.

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

TSXV:LOVE' s Gross Margin % Range Over the Past 10 Years
Min: 36.72 Med: 48.17 Max: 80.73
Current: 41.96

During the past 6 years, the highest Gross Margin % of Cannara Biotech was 80.73%. The lowest was 36.72%. And the median was 48.17%.

TSXV:LOVE's Gross Margin % is ranked worse than
59.94% of 991 companies
in the Drug Manufacturers industry
Industry Median: 46.47 vs TSXV:LOVE: 41.96

Cannara Biotech had a gross margin of 21.03% for the quarter that ended in Feb. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Cannara Biotech was 0.00% per year.

Cannara Biotech Gross Margin % Historical Data

The historical data trend for Cannara Biotech'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.

Cannara Biotech Gross Margin % Chart

Cannara Biotech Annual Data

Trend

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Gross Margin %

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80.73

47.98

60.50

48.36

47.56

Cannara Biotech Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Gross Margin %	Get a 7-Day Free Trial															32.69	53.65	53.99	42.27	21.03

Competitive Comparison of Cannara Biotech's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Cannara Biotech'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.

Cannara Biotech's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Cannara Biotech's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Cannara Biotech's Gross Margin % falls into.

Cannara Biotech Gross Margin % Calculation

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

Cannara Biotech's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as

Gross Margin % (A: Aug. 2023 )	=	Gross Profit (A: Aug. 2023 )	/	Revenue (A: Aug. 2023 )
	=	27.2	/	57.26
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(57.26 - 30.029)	/	57.26
	=	47.56 %

Cannara Biotech's Gross Margin for the quarter that ended in Feb. 2024 is calculated as

Gross Margin % (Q: Feb. 2024 )	=	Gross Profit (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	4.1	/	19.683
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(19.683 - 15.543)	/	19.683
	=	21.03 %

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.

Cannara Biotech (TSXV:LOVE) 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

Cannara Biotech had a gross margin of 21.03% for the quarter that ended in Feb. 2024 => 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.

Cannara Biotech Gross Margin % Related Terms

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Cannara Biotech (TSXV:LOVE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Cannara Biotech Inc (TSXV:LOVE) » Definitions » Gross Margin %

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Traded in Other Exchanges

LOVFF:USA 8CB0:Germany

Address

1055 West Georgia Street, Suite 2050, Vancouver, BC, CAN, V6E 3P3

Website

http://www.cannara.ca

Cannara Biotech Inc is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for Canadian markets. The company owns two mega Quebec-based facilities. The company operates in in two segments; Indoor cannabis operations segment which includes the cultivation, processing and sale of dried cannabis and cannabis derivatives for the Canadian market and the Real estate operations segment related to the Farnham and Valleyfield building. Majority of the revenue for the company is generated from its Cannabis operations segment. .

Executives