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Measurement Specialties (FRA:MEG) Gross Margin % : 40.07% (As of Jun. 2014)


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What is Measurement Specialties Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Measurement Specialties's Gross Profit for the three months ended in Jun. 2014 was €33.7 Mil. Measurement Specialties's Revenue for the three months ended in Jun. 2014 was €84.0 Mil. Therefore, Measurement Specialties's Gross Margin % for the quarter that ended in Jun. 2014 was 40.07%.


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

FRA:MEG' s Gross Margin % Range Over the Past 10 Years
Min: 28.54   Med: 41.31   Max: 55.61
Current: 41.23


During the past 13 years, the highest Gross Margin % of Measurement Specialties was 55.61%. The lowest was 28.54%. And the median was 41.31%.

FRA:MEG's Gross Margin % is not ranked
in the Hardware industry.
Industry Median: 24.465 vs FRA:MEG: 41.23

Measurement Specialties had a gross margin of 40.07% for the quarter that ended in Jun. 2014 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Measurement Specialties was 0.30% per year.


Measurement Specialties Gross Margin % Historical Data

The historical data trend for Measurement Specialties'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.

Measurement Specialties Gross Margin % Chart

Measurement Specialties Annual Data
Trend Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.35 41.78 40.19 40.95 41.66

Measurement Specialties Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 41.68 42.57 40.77 41.64 40.07

Competitive Comparison of Measurement Specialties's Gross Margin %

For the Scientific & Technical Instruments subindustry, Measurement Specialties'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.


Measurement Specialties's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Measurement Specialties's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Measurement Specialties's Gross Margin % falls into.



Measurement Specialties Gross Margin % Calculation

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

Measurement Specialties's Gross Margin for the fiscal year that ended in Mar. 2014 is calculated as

Gross Margin % (A: Mar. 2014 )=Gross Profit (A: Mar. 2014 ) / Revenue (A: Mar. 2014 )
=124.3 / 298.357
=(Revenue - Cost of Goods Sold) / Revenue
=(298.357 - 174.055) / 298.357
=41.66 %

Measurement Specialties's Gross Margin for the quarter that ended in Jun. 2014 is calculated as


Gross Margin % (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=33.7 / 83.999
=(Revenue - Cost of Goods Sold) / Revenue
=(83.999 - 50.343) / 83.999
=40.07 %

* 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.


Measurement Specialties  (FRA:MEG) 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

Measurement Specialties had a gross margin of 40.07% for the quarter that ended in Jun. 2014 => 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.


Measurement Specialties Gross Margin % Related Terms

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Measurement Specialties (FRA:MEG) Business Description

Traded in Other Exchanges
N/A
Address
Measurement Specialties, Inc. is a New Jersey corporation organized in 1981. The Company is engaged in the design, development and manufacture of sensors and sensor-based systems for original equipment manufacturers (OEM) and end users, based on a broad portfolio of proprietary technology and typically characterized by the MEAS brand name. The Company is a multi-national corporation with fifteen main manufacturing facilities strategically located in the United States, China and Europe, enabling the Company to produce and market an array of sensors that use advanced technologies to measure precise ranges of physical characteristics. These sensors are used for engine and vehicle, medical, general industrial, consumer and home appliance, military/aerospace, and test and measurement applications. The Company's products include sensors for measuring pressure, linear/rotary position, force, torque, piezoelectric polymer film sensors, custom microstructures, load cells, vibrations and acceleration, optical absorption, humidity, gas concentration, gas flow rate, temperature, fluid properties and fluid level. The Company's advanced technologies include piezoresistive silicon, polymer and ceramic piezoelectric materials, application specific integrated circuits, micro-electromechanical systems ('MEMS'), foil strain gauges, electromagnetic force balance systems, fluid capacitive devices, linear and rotational variable differential transformers, anisotropic magneto-resistive devices, electromagnetic displacement sensors, hygroscopic capacitive structures, ultrasonic measurement systems, optical measurement systems, negative thermal coefficient ('NTC') ceramic sensors, 3-6 DOF (degree of freedom) force/torque structures, complex mechanical resonators, magnetic reed switches, high frequency multipoint scanning algorithms, and high precision submersible hydrostatic level detection. The Company's competitors include small independent companies and divisions of large corporations such as Danaher, General Electric, Schneider-Electric and Honeywell.