Gross Margin % is calculated as gross profit divided by its revenue. Espey Manufacturing & Electronics's Gross Profit for the
three
months ended in Dec. 2023 was $3.14 Mil. Espey Manufacturing & Electronics's Revenue for the
three
months ended in Dec. 2023 was $10.30 Mil. Therefore, Espey Manufacturing & Electronics's Gross Margin % for the quarter that ended in Dec. 2023 was 30.51%.
Warning Sign:
Espey Manufacturing & Electronics Corp gross margin has been in long-term decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for Espey Manufacturing & Electronics's Gross Margin % or its related term are showing as below:
ESP'
s Gross Margin % Range Over the Past 10 Years
Min: 12.11 Med: 20.15 Max: 26.84
Current: 25.29
During the past 13 years, the highestGross Margin % of Espey Manufacturing & Electronics was 26.84%. The lowest was 12.11%. And the median was 20.15%.
ESP's Gross Margin % is ranked worse than 53.53% of 2935
companies
in the Industrial Products industry
Industry Median: 26.44
vs ESP: 25.29
Espey Manufacturing & Electronics had a gross margin of 30.51% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Espey Manufacturing & Electronics was -2.70% per year.
Espey Manufacturing & Electronics Gross Margin % Historical Data
The historical data trend for Espey Manufacturing & Electronics'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 Electrical Equipment & Parts subindustry, Espey Manufacturing & Electronics'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.
Espey Manufacturing & Electronics Gross Margin % Distribution
For the Industrial Products industry and Industrials sector, Espey Manufacturing & Electronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Espey Manufacturing & Electronics'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.
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
Espey Manufacturing & Electronics had a gross margin of 30.51% 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.
Espey Manufacturing & Electronics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Espey Manufacturing & Electronics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Espey Manufacturing & Electronics (Espey Manufacturing & Electronics) Business Description
Espey Manufacturing & Electronics Corp designs, develops, tests, and manufactures specialized military and rugged industrial power supplies and transformers for use in harsh or severe environment applications. Its products and solutions include power converters, power conditioning, high-voltage radar, contract manufacturing, custom engineering, and others. The applications of these products include AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power.
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