QualTek Services (QualTek Services) Gross Margin % : 8.19% (As of Mar. 2023)

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What is QualTek Services Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. QualTek Services's Gross Profit for the three months ended in Mar. 2023 was $12.8 Mil. QualTek Services's Revenue for the three months ended in Mar. 2023 was $156.2 Mil. Therefore, QualTek Services's Gross Margin % for the quarter that ended in Mar. 2023 was 8.19%.

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

QTEKQ' s Gross Margin % Range Over the Past 10 Years
Min: 8.98 Med: 12.04 Max: 17.89
Current: 11.2

During the past 4 years, the highest Gross Margin % of QualTek Services was 17.89%. The lowest was 8.98%. And the median was 12.04%.

QTEKQ's Gross Margin % is not ranked
in the Telecommunication Services industry.
Industry Median: 49.145 vs QTEKQ: 11.20

QualTek Services had a gross margin of 8.19% for the quarter that ended in Mar. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for QualTek Services was 0.00% per year.

QualTek Services Gross Margin % Historical Data

The historical data trend for QualTek Services'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.

QualTek Services Gross Margin % Chart

QualTek Services Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Gross Margin %

12.33

8.98

17.89

11.75

QualTek Services Quarterly Data
	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Gross Margin %	Get a 7-Day Free Trial							10.84	10.88	12.96	11.91	8.19

Competitive Comparison of QualTek Services's Gross Margin %

For the Telecom Services subindustry, QualTek Services'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.

QualTek Services's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, QualTek Services's Gross Margin % distribution charts can be found below:

* The bar in red indicates where QualTek Services's Gross Margin % falls into.

QualTek Services Gross Margin % Calculation

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

QualTek Services's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	88.6	/	753.856
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(753.856 - 665.291)	/	753.856
	=	11.75 %

QualTek Services's Gross Margin for the quarter that ended in Mar. 2023 is calculated as

Gross Margin % (Q: Mar. 2023 )	=	Gross Profit (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	12.8	/	156.246
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(156.246 - 143.444)	/	156.246
	=	8.19 %

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.

QualTek Services (OTCPK:QTEKQ) 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

QualTek Services had a gross margin of 8.19% for the quarter that ended in Mar. 2023 => 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.

QualTek Services Gross Margin % Related Terms

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QualTek Services (QualTek Services) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » QualTek Services Inc (OTCPK:QTEKQ) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

475 Sentry Parkway E, Suite 200, Blue Bell, PA, USA, 19422

Website

https://www.qualtekservices.com

QualTek Services Inc is a technology-driven provider of infrastructure services to the 5G wireless, telecom, power grid modernization, and renewable energy sectors across North America.

Executives

Emanuel R Pearlman	director	250 EAST 79TH STREET, NEW YORK NY 10075
Alan Jeffrey Carr	director	8540 GANDER CREEK DRIVE, MIAMISBURG OH 45342
Matthew J. Mccolgan	officer: Chief Financial Officer	475 SENTRY PARKWAY E, STE 200, BLUE BELL PA 19422
John A Kritzmacher	director	C/O GLOBAL CROSSING LIMITED, 200 PARK AVENUE, SUITE 300, FLORHAM PARK NJ 07932
Bruce E Roberson	director	5416 HOLLY SPRINGS DR, HOUSTON TX 77056
Cielo Hernandez	director	C/O XL FLEET CORP., 145 NEWTON STREET, BOSTON MA 02135
Adam Paul Spittler	officer: Chief Financial Officer	C/O QUALTEK SERVICES INC., 475 SENTRY PARKWAY E, SUITE 200, BLUE BELL PA 19422
Christopher Scott Hisey	director, officer: CEO and Director	818 HIDDEN FOREST DRIVE, COLLEGEVILLE PA 19426
Elizabeth Downey	officer: Chief Administrative Officer	1777 SENTRY PARKWAY WEST, SUITE 302, BLUE BELL PA 19422
Daniel Lafond	director	C/O QUALTEK SERVICES INC., 475 SENTRY PARKWAY E, SUITE 200, BLUE BELL PA 19422
Brightstar Gp Investors, Llc	director, 10 percent owner	C/O QUALTEK SERVICES INC., 475 SENTRY PARKWAY E, SUITE 200, BLUE BELL PA 19422
Bcp Qualtek Ii, Llc	director, 10 percent owner	C/O QUALTEK SERVICES INC., 475 SENTRY PARKWAY E, SUITE 200, BLUE BELL PA 19422
Bcp Qualtek, Llc	director, 10 percent owner	C/O QUALTEK SERVICES INC., 475 SENTRY PARKWAY E, SUITE 200, BLUE BELL PA 19422
Raul A Deju	director
Maha Eltobgy	director	C/O QUALTEK SERVICES INC., 475 SENTRY PARKWAY E, SUITE 200, BLUE BELL PA 19422