The historical rank and industry rank for TRW Automotive Holdings's Gross Margin % or its related term are showing as below:
FRA:TQT's Gross Margin % is not ranked *
in the Vehicles & Parts industry.
Industry Median: 19.67 * Ranked among companies with meaningful Gross Margin % only.
TRW Automotive Holdings had a gross margin of 11.66% for the quarter that ended in Mar. 2015 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TRW Automotive Holdings was 0.00% per year.
TRW Automotive Holdings Gross Margin % Historical Data
* 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 TRW Automotive Holdings's Gross Margin %
For the Auto Parts subindustry, TRW Automotive 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.
TRW Automotive Holdings's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, TRW Automotive Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TRW Automotive Holdings'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.
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
TRW Automotive Holdings had a gross margin of 11.66% for the quarter that ended in Mar. 2015 => No sustainable 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.
TRW Automotive Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of TRW Automotive Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
TRW Automotive Holdings (FRA:TQT) Business Description
TRW Automotive Holdings Corp is a Delaware corporation formed in 2002. The Company is a supplier of automotive systems, modules and components to automotive original equipment manufacturers and related aftermarkets. It conducts substantially all of its operations through subsidiaries. These operations encompass the design, manufacture and sale of active and passive safety related products and systems. Active safety related products and systems principally refer to vehicle dynamic controls (braking and steering) and electronics (driver assistance systems), and passive safety related products and systems principally refer to occupant restraints (airbags and seat belts) and electronics (airbag electronic control units, and crash and occupant weight sensors). It operates its business in four segments: Chassis Systems, Occupant Safety Systems, Electronics and Automotive Components. The Chassis Systems segment focuses on the design, manufacture and sale of products and systems relating to braking, steering, modules, and linkage and suspension. It sells its Chassis Systems products and systems to OEMs and other Tier 1 suppliers. The Occupant Safety Systems segment focuses on the design, manufacture and sale of products and systems relating to airbags, seat belts, and steering wheels. It sells its Occupant Safety Systems products and systems to OEMs and other Tier 1 suppliers. It also sells these products and systems to OEM service organizations. The Electronics segment focuses on the design, manufacture and sale of electronics components and systems in the areas of safety, chassis, radio frequency, powertrain, and driver assistance systems, including cameras and radars. It sells its Electronics products and systems to OEMs and to its Chassis Systems segment (braking and steering applications). It also sells these products and systems to OEM service organizations. The Automotive Components segment focuses on the design, manufacture and sale of body controls, engine valves, and engineered fasteners and components. It sells its Automotive Components products to OEMs and other Tier 1 suppliers, and to certain non-automotive markets and customers. It also sells these products to OEM service organizations. In addition, it sells some engine valve and body control products to independent distributors for the automotive aftermarket. The Company's principal competitors include Advics, Bosch, Continental, JTEKT, Nexteer and ZF in the Chassis Systems segment; Autoliv, Key Safety, and Takata in the Occupant Safety Systems segment; Autoliv, Bosch, Continental, Delphi, Denso, and Magna in the Electronics segment; and Delphi, Eaton, ITW, Kostal, Nifco, Raymond, Tokai Rika, and Valeo in the Automotive Components segment. Its operations are subject to a variety of federal, state, local and international laws and regulations which may have a direct or indirect effect on its business.
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