Gross Margin % is calculated as gross profit divided by its revenue. Daktronics's Gross Profit for the
three
months ended in Jan. 2024 was $41.7 Mil. Daktronics's Revenue for the
three
months ended in Jan. 2024 was $170.3 Mil. Therefore, Daktronics's Gross Margin % for the quarter that ended in Jan. 2024 was 24.50%.
Warning Sign:
Daktronics Inc gross margin has been in long-term decline. The average rate of decline per year is -3.7%.
The historical rank and industry rank for Daktronics's Gross Margin % or its related term are showing as below:
DAKT'
s Gross Margin % Range Over the Past 10 Years
Min: 19.1 Med: 23.17 Max: 26.99
Current: 26.99
During the past 13 years, the highestGross Margin % of Daktronics was 26.99%. The lowest was 19.10%. And the median was 23.17%.
DAKT's Gross Margin % is ranked better than 55.88% of 2439
companies
in the Hardware industry
Industry Median: 24.5
vs DAKT: 26.99
Daktronics had a gross margin of 24.50% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Daktronics was -3.70% per year.
Daktronics Gross Margin % Historical Data
The historical data trend for Daktronics'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 Electronic Components subindustry, Daktronics'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.
Daktronics Gross Margin % Distribution
For the Hardware industry and Technology sector, Daktronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Daktronics'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.
Daktronics (NAS:DAKT) 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
Daktronics had a gross margin of 24.50% for the quarter that ended in Jan. 2024 => Competition eroding margins
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.
Daktronics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Daktronics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Daktronics Inc designs and manufactures electronic scoreboards, programmable display systems, and large screen video displays for sporting, commercial and transportation applications. It is engaged in a full range of activities: marketing and sales, engineering and product design and development, manufacturing, technical contracting, professional services, and customer service and support. The company offers a complete line of products, from small scoreboards and electronic displays to large multimillion-dollar video display systems as well as related control, timing, and sound systems. The company has five reportable segments such as Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company makes majority of its revenue from Live events.
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