Gross Margin % is calculated as gross profit divided by its revenue. SIFCO Industries's Gross Profit for the
three
months ended in Sep. 2023 was $1.07 Mil. SIFCO Industries's Revenue for the
three
months ended in Sep. 2023 was $24.63 Mil. Therefore, SIFCO Industries's Gross Margin % for the quarter that ended in Sep. 2023 was 4.35%.
The historical rank and industry rank for SIFCO Industries's Gross Margin % or its related term are showing as below:
SIF'
s Gross Margin % Range Over the Past 10 Years
Min: -2.21 Med: 10.57 Max: 21.17
Current: 8.65
During the past 13 years, the highestGross Margin % of SIFCO Industries was 21.17%. The lowest was -2.21%. And the median was 10.57%.
SIF's Gross Margin % is ranked worse than 87.54% of 297
companies
in the Aerospace & Defense industry
Industry Median: 26.36
vs SIF: 8.65
SIFCO Industries had a gross margin of 4.35% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SIFCO Industries was 0.00% per year.
SIFCO Industries Gross Margin % Historical Data
The historical data trend for SIFCO 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 SIFCO Industries's Gross Margin %
For the Aerospace & Defense subindustry, SIFCO 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.
SIFCO Industries's Gross Margin % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, SIFCO Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SIFCO 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
SIFCO Industries had a gross margin of 4.35% for the quarter that ended in Sep. 2023 => No sustainable 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.
SIFCO Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of SIFCO Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
SIFCO Industries (SIFCO Industries) Business Description
SIFCO Industries Inc is engaged in the production of forgings and machined components for the Aerospace and Energy, Defense and Commercial Space markets. Its processes and services include forging, heat-treating and machining. It serves original equipment manufacturers (OEM) as well as aftermarket customers. Its products are made of steel, stainless steel, titanium and aluminium and include OEM and aftermarket components for aircraft and industrial gas turbine engines, steam turbine blades, structural airframe components, aircraft landing gear components, aircraft wheels and brakes, critical rotating components for helicopters and industrial products. Substantial revenue is derived from North America as well as operates in Europe.
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