The historical rank and industry rank for Micropac Industries's Gross Margin % or its related term are showing as below:
MPAD'
s Gross Margin % Range Over the Past 10 Years
Min: 31.67 Med: 38.59 Max: 45.96
Current: 36.8
During the past 13 years, the highestGross Margin % of Micropac Industries was 45.96%. The lowest was 31.67%. And the median was 38.59%.
MPAD's Gross Margin % is ranked better than 72.92% of 2437
companies
in the Hardware industry
Industry Median: 24.45
vs MPAD: 36.80
Micropac Industries had a gross margin of 42.73% for the quarter that ended in Feb. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Micropac Industries was -0.90% per year.
Micropac Industries Gross Margin % Historical Data
The historical data trend for Micropac 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 Micropac Industries's Gross Margin %
For the Electronic Components subindustry, Micropac 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.
Micropac Industries's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Micropac Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Micropac 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
Micropac Industries had a gross margin of 42.73% for the quarter that ended in Feb. 2024 => 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.
Micropac Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of Micropac Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Micropac Industries (Micropac Industries) Business Description
Micropac Industries Inc manufactures and distributes a range of hybrid microelectronic circuits, solid-state relays (SSRs), power controllers, and optoelectronic components and assemblies. Its products are used as components in a range of military, space, and industrial systems, including aircraft instrumentation and navigation systems, power supplies, electronic controls, computers, medical devices, and high-temperature products. The company's core technology is the packaging and interconnecting of multi-chip microelectronics modules. Other technologies include light-emitting, and light-sensitive materials and products, including light-emitting diodes (LEDs) and silicon phototransistors used in the company's optoelectronic components and assemblies.
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