Gross Margin % is calculated as gross profit divided by its revenue. Ducommun's Gross Profit for the
three
months ended in Dec. 2023 was $41.7 Mil. Ducommun's Revenue for the
three
months ended in Dec. 2023 was $192.2 Mil. Therefore, Ducommun's Gross Margin % for the quarter that ended in Dec. 2023 was 21.69%.
The historical rank and industry rank for Ducommun's Gross Margin % or its related term are showing as below:
DCO'
s Gross Margin % Range Over the Past 10 Years
Min: 15.13 Med: 19.87 Max: 22.07
Current: 21.56
During the past 13 years, the highestGross Margin % of Ducommun was 22.07%. The lowest was 15.13%. And the median was 19.87%.
DCO's Gross Margin % is ranked worse than 61.28% of 297
companies
in the Aerospace & Defense industry
Industry Median: 26.41
vs DCO: 21.56
Ducommun had a gross margin of 21.69% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ducommun was 1.10% per year.
Ducommun Gross Margin % Historical Data
The historical data trend for Ducommun'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 Aerospace & Defense subindustry, Ducommun'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.
Ducommun Gross Margin % Distribution
For the Aerospace & Defense industry and Industrials sector, Ducommun's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ducommun'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.
Ducommun (NYSE:DCO) 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
Ducommun had a gross margin of 21.69% for the quarter that ended in Dec. 2023 => 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.
Ducommun Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ducommun's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ducommun Inc provides engineering & manufacturing services for high-performance products & high-cost-of failure applications used primarily in the aerospace and defense, industrial, medical & other industries. The company's reportable segments are Structural Systems & Electronic Systems. Structural Systems designs, engineers, and manufactures large, complex contoured aerostructure components & assemblies and supplies composite and metal bonded structures and assemblies. Electronic Systems designs, engineers, and manufactures high-reliability electronic & electromechanical products used in worldwide technology-driven markets including aerospace and defense, industrial, medical, & other end-use markets. It generates most of its revenue from the Electronic Systems.
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