WTER's Gross Margin % is ranked worse than 87.96% of 108
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 36.665
vs WTER: 20.66
The Alkaline Water Co had a gross margin of 25.26% for the quarter that ended in Jun. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Alkaline Water Co was -17.10% per year.
The Alkaline Water Co Gross Margin % Historical Data
The historical data trend for The Alkaline Water Co'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 The Alkaline Water Co's Gross Margin %
For the Beverages - Non-Alcoholic subindustry, The Alkaline Water Co'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.
The Alkaline Water Co's Gross Margin % Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, The Alkaline Water Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Alkaline Water Co'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.
The Alkaline Water Co (OTCPK:WTER) 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
The Alkaline Water Co had a gross margin of 25.26% for the quarter that ended in Jun. 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.
The Alkaline Water Co Gross Margin % Related Terms
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The Alkaline Water Co (The Alkaline Water Co) Business Description
Alkaline Water Co Inc is engaged in the business of distributing and marketing bottled alkaline water for retail consumers of different sizes. The firm sells its product in 500ml, 700ml, 1-liter, 1.5-liter 3-liter, and 1-gallon sizes. Its only operating geographical segment being the United States of America. The company sells its product to convenience stores, natural food products stores, large ethnic markets, and national retailers.
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