Gross Margin % is calculated as gross profit divided by its revenue. ATI's Gross Profit for the
three
months ended in Dec. 2023 was $206 Mil. ATI's Revenue for the
three
months ended in Dec. 2023 was $1,064 Mil. Therefore, ATI's Gross Margin % for the quarter that ended in Dec. 2023 was 19.33%.
The historical rank and industry rank for ATI's Gross Margin % or its related term are showing as below:
ATI'
s Gross Margin % Range Over the Past 10 Years
Min: 1.62 Med: 13 Max: 19.23
Current: 19.23
During the past 13 years, the highestGross Margin % of ATI was 19.23%. The lowest was 1.62%. And the median was 13.00%.
ATI's Gross Margin % is ranked worse than 70.45% of 2937
companies
in the Industrial Products industry
Industry Median: 26.45
vs ATI: 19.23
ATI had a gross margin of 19.33% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ATI was 5.30% per year.
ATI Gross Margin % Historical Data
The historical data trend for ATI'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.
For the Metal Fabrication subindustry, ATI'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.
ATI's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, ATI's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ATI'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.
ATI (NYSE:ATI) 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
ATI had a gross margin of 19.33% for the quarter that ended in Dec. 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.
ATI Gross Margin % Related Terms
Thank you for viewing the detailed overview of ATI's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ATI Inc supplies specialty metals to various end markets, including aerospace and defense, oil and gas, automotive, and electrical energy, among many others. The company's operating segment includes High-Performance Materials and Components and Advanced Alloys and Solutions. The majority of revenue is from the Advanced Alloys and Solutions segment. The AA&S segment is focused on delivering high-value flat products, Other important end markets for AA&S include automotive & electronics. AA&S produces nickel-based alloys, titanium & titanium-based alloys, & specialty alloys in a variety of forms including plate, sheet, and strip products. Geographically, it operates in the United States, China, the United Kingdom, Germany, France, Canada and Others, the majority is from the United States.
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