Q3-22 Gross Profit Margin was clearly below standard Gross Margin helps a company measure the profitability / performance of its operations / manufacturing activities. In Q3-22 Largo’s Gross Margin was merely 16% meaning that the company could only retain $0.16 from each dollar of revenue generated to pay for non-operating costs such as SG&A. Sad!
Q1-22
Revenue = US$42.7M
Operating Costs = US$28.9M
Gross Income = US$13.8M
Gross Margin = 32%
(Net Margin before Tax = US$0.8M / 42.7M = 1.9%)
Q2-22
Revenue = US$84.8M
Operating Costs = US$50.7M
Gross Income = US$34.1M
Gross Margin = 40%
(Net Margin before Tax = US$22.4 / 84.8M = 26.4%)
Q3-22
Revenue = US$54.3M
Operating Costs = US$45.6M
Gross Income = US$8.7M
Gross Margin = 16%
(Net Loss before Tax = US$(1.96M) = a negative margin)