The historical rank and industry rank for Aehr Test Systems's Gross Margin % or its related term are showing as below:
AEHR'
s Gross Margin % Range Over the Past 10 Years
Min: 35.48 Med: 37.93 Max: 51.93
Current: 49.49
During the past 13 years, the highestGross Margin % of Aehr Test Systems was 51.93%. The lowest was 35.48%. And the median was 37.93%.
AEHR's Gross Margin % is ranked better than 83.54% of 972
companies
in the Semiconductors industry
Industry Median: 28.06
vs AEHR: 49.49
Aehr Test Systems had a gross margin of 41.73% for the quarter that ended in Feb. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Aehr Test Systems was 4.80% per year.
Aehr Test Systems Gross Margin % Historical Data
The historical data trend for Aehr Test Systems'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.
Competitive Comparison of Aehr Test Systems's Gross Margin %
For the Semiconductor Equipment & Materials subindustry, Aehr Test Systems'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.
Aehr Test Systems's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Aehr Test Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aehr Test Systems'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.
Aehr Test Systems (NAS:AEHR) 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
Aehr Test Systems had a gross margin of 41.73% for the quarter that ended in Feb. 2024 => 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.
Aehr Test Systems Gross Margin % Related Terms
Thank you for viewing the detailed overview of Aehr Test Systems's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Aehr Test Systems (Aehr Test Systems) Business Description
Aehr Test Systems is engaged in test systems for burning-in and testing logic, optical, and memory integrated circuits. Increased quality and reliability needs of the Automotive and Mobility integrated circuit markets are driving additional test requirements, incremental capacity needs, and new opportunities for the company's products in package, wafer level, and singulated die/module level test. The company provides production solutions across the product manufacturing flow to improve yield and reliability and has developed and introduced several innovative products, including the ABTSTM and FOX-PTM families of test and burn-in systems and FOX WaferPakTM Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier and FOX DiePak Loader.
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