Gross Margin % is calculated as gross profit divided by its revenue. EACO's Gross Profit for the
three
months ended in Feb. 2024 was $25.0 Mil. EACO's Revenue for the
three
months ended in Feb. 2024 was $83.3 Mil. Therefore, EACO's Gross Margin % for the quarter that ended in Feb. 2024 was 30.03%.
The historical rank and industry rank for EACO's Gross Margin % or its related term are showing as below:
EACO'
s Gross Margin % Range Over the Past 10 Years
Min: 25.54 Med: 28.5 Max: 29.44
Current: 29.44
During the past 13 years, the highestGross Margin % of EACO was 29.44%. The lowest was 25.54%. And the median was 28.50%.
EACO's Gross Margin % is ranked better than 60.66% of 2440
companies
in the Hardware industry
Industry Median: 24.355
vs EACO: 29.44
EACO had a gross margin of 30.03% for the quarter that ended in Feb. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for EACO was 0.30% per year.
EACO Gross Margin % Historical Data
The historical data trend for EACO'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 Electronics & Computer Distribution subindustry, EACO'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.
EACO's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, EACO's Gross Margin % distribution charts can be found below:
* The bar in red indicates where EACO'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.
EACO (OTCPK:EACO) 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
EACO had a gross margin of 30.03% for the quarter that ended in Feb. 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.
EACO Gross Margin % Related Terms
Thank you for viewing the detailed overview of EACO's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
EACO Corp is a holding company. The company, through its subsidiary, distributes electronic components and fasteners. Its products include electronic components such as spacers and standoffs, card guides and ejectors, component holders and fuses, circuit board connectors, and cable components, as well as a large variety of fasteners and hardware. It also provides customized services and solutions for a wide range of production needs, including special packaging, bin stocking, kitting and assembly, bar coding, electronic requisitioning, and integrated supply programs. It operates through three divisions, Bisco Industries, National-Precision, and Fast-Cor.
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