Gross Margin % is calculated as gross profit divided by its revenue. Fuel Tech's Gross Profit for the
three
months ended in Dec. 2023 was $3.24 Mil. Fuel Tech's Revenue for the
three
months ended in Dec. 2023 was $6.35 Mil. Therefore, Fuel Tech's Gross Margin % for the quarter that ended in Dec. 2023 was 51.11%.
The historical rank and industry rank for Fuel Tech's Gross Margin % or its related term are showing as below:
FTEK'
s Gross Margin % Range Over the Past 10 Years
Min: 34.07 Med: 41.47 Max: 49.04
Current: 43.04
During the past 13 years, the highestGross Margin % of Fuel Tech was 49.04%. The lowest was 34.07%. And the median was 41.47%.
FTEK's Gross Margin % is ranked better than 84.95% of 2937
companies
in the Industrial Products industry
Industry Median: 26.42
vs FTEK: 43.04
Fuel Tech had a gross margin of 51.11% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Fuel Tech was 4.70% per year.
Fuel Tech Gross Margin % Historical Data
The historical data trend for Fuel Tech'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.
Competitive Comparison of Fuel Tech's Gross Margin %
For the Pollution & Treatment Controls subindustry, Fuel Tech'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.
Fuel Tech's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Fuel Tech's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fuel Tech'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.
Fuel Tech (NAS:FTEK) 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
Fuel Tech had a gross margin of 51.11% for the quarter that ended in Dec. 2023 => Durable 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.
Fuel Tech Gross Margin % Related Terms
Thank you for viewing the detailed overview of Fuel Tech's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Fuel Tech Inc is an technology provider of boiler optimization, efficiency improvement, and air pollution reduction to utility and industrial customers. The company operates in two segments, Air Pollution Control and Fuel Chem. The Air Pollution Control technology segment includes technologies to reduce NOx emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. TheFuel Chem technology segment uses chemical processes in combination with advanced Computational Fluid Dynamics and Chemical Kinetics Modeling boiler modeling for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace using TIFI Targeted In-Furnace Injection technology.
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