PWR Holdings (ASX:PWH) Gross Margin % : 78.75% (As of Dec. 2023)

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What is PWR Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. PWR Holdings's Gross Profit for the six months ended in Dec. 2023 was A$50.6 Mil. PWR Holdings's Revenue for the six months ended in Dec. 2023 was A$64.2 Mil. Therefore, PWR Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 78.75%.

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

ASX:PWH' s Gross Margin % Range Over the Past 10 Years
Min: 75.74 Med: 78.77 Max: 80.62
Current: 79.27

During the past 8 years, the highest Gross Margin % of PWR Holdings was 80.62%. The lowest was 75.74%. And the median was 78.77%.

ASX:PWH's Gross Margin % is ranked better than
98.9% of 1270 companies
in the Vehicles & Parts industry
Industry Median: 19.535 vs ASX:PWH: 79.27

PWR Holdings had a gross margin of 78.75% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for PWR Holdings was -0.10% per year.

PWR Holdings Gross Margin % Historical Data

The historical data trend for PWR Holdings'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.

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PWR Holdings Gross Margin % Chart

PWR Holdings Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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78.71

78.32

77.26

79.37

79.87

PWR Holdings Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial												80.85	78.15	79.99	79.77	78.75

Competitive Comparison of PWR Holdings's Gross Margin %

For the Auto Parts subindustry, PWR Holdings'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.

PWR Holdings's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, PWR Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where PWR Holdings's Gross Margin % falls into.

PWR Holdings Gross Margin % Calculation

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

PWR Holdings's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	94.5	/	118.326
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(118.326 - 23.819)	/	118.326
	=	79.87 %

PWR Holdings'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 )
	=	50.6	/	64.215
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(64.215 - 13.645)	/	64.215
	=	78.75 %

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.

PWR Holdings (ASX:PWH) 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

PWR Holdings had a gross margin of 78.75% for the quarter that ended in Dec. 2023 => Durable 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.

PWR Holdings Gross Margin % Related Terms

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PWR Holdings (ASX:PWH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » PWR Holdings Ltd (ASX:PWH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

103 Lahrs Road, Ormeau, QLD, AUS, 4208

Website

https://www.pwr.com.au

PWR Holdings is a designer, manufacturer, and supplier of cooling solutions for motorsports and the performance automotive industry. PWR produces aluminum radiators, intercoolers, heat exchangers, oil coolers, and other cooling accessories for motorsports, performance automotive original equipment manufacturers, the automotive aftermarket, and aerospace and defense sectors. The motorsports segment generates the majority of revenue, while OEM and aftermarket constitute over a third of the income stream. PWR's products are primarily sold in North America and Europe.

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