Gross Margin % is calculated as gross profit divided by its revenue. LSI Industries's Gross Profit for the
three
months ended in Dec. 2023 was $31.5 Mil. LSI Industries's Revenue for the
three
months ended in Dec. 2023 was $109.0 Mil. Therefore, LSI Industries's Gross Margin % for the quarter that ended in Dec. 2023 was 28.93%.
The historical rank and industry rank for LSI Industries's Gross Margin % or its related term are showing as below:
LYTS'
s Gross Margin % Range Over the Past 10 Years
Min: 21.81 Med: 24.45 Max: 28.76
Current: 28.76
During the past 13 years, the highestGross Margin % of LSI Industries was 28.76%. The lowest was 21.81%. And the median was 24.45%.
LYTS's Gross Margin % is ranked better than 59.19% of 2438
companies
in the Hardware industry
Industry Median: 24.5
vs LYTS: 28.76
LSI Industries had a gross margin of 28.93% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for LSI Industries was 1.50% per year.
LSI Industries Gross Margin % Historical Data
The historical data trend for LSI Industries'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 LSI Industries's Gross Margin %
For the Electronic Components subindustry, LSI Industries'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.
LSI Industries's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, LSI Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LSI Industries'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
LSI Industries had a gross margin of 28.93% 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.
LSI Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of LSI Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
LSI Industries (LSI Industries) Business Description
LSI Industries Inc provides corporate visual image solutions to the petroleum and convenience store industry. The company's operating segments include Lighting and Display Solutions. It generates maximum revenue from the Lighting segment. Lighting Segment manufactures and markets outdoor and indoor lighting and lighting controls for the commercial, industrial, and multi-site retail markets including the petroleum/convenience store, quick-service, and automotive markets. The Display Solutions Segment manufactures, sells and installs exterior and interior visual image and display elements, including printed graphics, structural graphics, digital signage, menu board systems, display fixtures, refrigerated displays, and custom display elements.
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