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CNH Industrial NV (WBO:CNHI) Gross Margin % : 30.73% (As of Dec. 2023)


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What is CNH Industrial NV Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. CNH Industrial NV's Gross Profit for the three months ended in Dec. 2023 was €1,914 Mil. CNH Industrial NV's Revenue for the three months ended in Dec. 2023 was €6,228 Mil. Therefore, CNH Industrial NV's Gross Margin % for the quarter that ended in Dec. 2023 was 30.73%.


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

WBO:CNHI' s Gross Margin % Range Over the Past 10 Years
Min: 21.44   Med: 22.67   Max: 31.79
Current: 31.79


During the past 13 years, the highest Gross Margin % of CNH Industrial NV was 31.79%. The lowest was 21.44%. And the median was 22.67%.

WBO:CNHI's Gross Margin % is ranked better than
78.05% of 205 companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 24.22 vs WBO:CNHI: 31.79

CNH Industrial NV had a gross margin of 30.73% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for CNH Industrial NV was 7.60% per year.


CNH Industrial NV Gross Margin % Historical Data

The historical data trend for CNH Industrial NV'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.

CNH Industrial NV Gross Margin % Chart

CNH Industrial NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.25 24.54 27.63 28.68 31.79

CNH Industrial NV Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial 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 28.30 32.40 32.04 32.19 30.73

Competitive Comparison of CNH Industrial NV's Gross Margin %

For the Farm & Heavy Construction Machinery subindustry, CNH Industrial NV'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.


CNH Industrial NV's Gross Margin % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, CNH Industrial NV's Gross Margin % distribution charts can be found below:

* The bar in red indicates where CNH Industrial NV's Gross Margin % falls into.



CNH Industrial NV Gross Margin % Calculation

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

CNH Industrial NV'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 )
=7197.5 / 22637.979
=(Revenue - Cost of Goods Sold) / Revenue
=(22637.979 - 15440.446) / 22637.979
=31.79 %

CNH Industrial NV'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 )
=1913.8 / 6228.264
=(Revenue - Cost of Goods Sold) / Revenue
=(6228.264 - 4314.485) / 6228.264
=30.73 %

* 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.


CNH Industrial NV  (WBO:CNHI) 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

CNH Industrial NV had a gross margin of 30.73% 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.


CNH Industrial NV Gross Margin % Related Terms

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CNH Industrial NV (WBO:CNHI) Business Description

Traded in Other Exchanges
Address
25 St. James's Street, London, GBR, SW1A 1HA
CNH Industrial is a global manufacturer of heavy machinery, with a range of products including agricultural and construction equipment. One of its most recognizable brands, Case IH, has served farmers for generations. The company's products are available through a robust dealer network, which includes over 3,600 dealer and distribution locations globally. CNH's finance arm provides retail financing for equipment to its customers in addition to wholesale financing for dealers, which increases the likelihood of product sales.