Gross Margin % is calculated as gross profit divided by its revenue. Hurco's Gross Profit for the
three
months ended in Jan. 2024 was $9.7 Mil. Hurco's Revenue for the
three
months ended in Jan. 2024 was $45.1 Mil. Therefore, Hurco's Gross Margin % for the quarter that ended in Jan. 2024 was 21.52%.
Warning Sign:
Hurco Companies Inc gross margin has been in long-term decline. The average rate of decline per year is -3.8%.
The historical rank and industry rank for Hurco's Gross Margin % or its related term are showing as below:
HURC'
s Gross Margin % Range Over the Past 10 Years
Min: 21.37 Med: 29.14 Max: 31.49
Current: 24.36
During the past 13 years, the highestGross Margin % of Hurco was 31.49%. The lowest was 21.37%. And the median was 29.14%.
HURC's Gross Margin % is ranked worse than 56.28% of 2937
companies
in the Industrial Products industry
Industry Median: 26.42
vs HURC: 24.36
Hurco had a gross margin of 21.52% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hurco was -3.80% per year.
Hurco Gross Margin % Historical Data
The historical data trend for Hurco'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 Specialty Industrial Machinery subindustry, Hurco'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.
Hurco's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hurco's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hurco'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.
Hurco (NAS:HURC) 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
Hurco had a gross margin of 21.52% 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.
Hurco Gross Margin % Related Terms
Thank you for viewing the detailed overview of Hurco's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hurco Companies Inc is a United States-based industrial technology company. It designs, manufactures, and sells computerized machine tools, consisting mainly of vertical machining centers and turning centers, to companies in the metal working industry through sales, service and distribution network. The company concentrated on designing user-friendly computer control systems that can be operated by both skilled and unskilled machine tool operators. It generates maximum revenue from the Computerized Machine Tools product. Geographically, It derives a majority of revenue from the United States of America. Its product categories include 5-Axis VMC; 3-Axis VMC; Horizontal MC and Turning Centers.
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