Gross Margin % is calculated as gross profit divided by its revenue. Strattec Security's Gross Profit for the
three
months ended in Dec. 2023 was $13.5 Mil. Strattec Security's Revenue for the
three
months ended in Dec. 2023 was $118.5 Mil. Therefore, Strattec Security's Gross Margin % for the quarter that ended in Dec. 2023 was 11.39%.
Warning Sign:
Strattec Security Corp gross margin has been in long-term decline. The average rate of decline per year is -3.3%.
The historical rank and industry rank for Strattec Security's Gross Margin % or its related term are showing as below:
STRT'
s Gross Margin % Range Over the Past 10 Years
Min: 8.55 Med: 13.51 Max: 18.88
Current: 10.61
During the past 13 years, the highestGross Margin % of Strattec Security was 18.88%. The lowest was 8.55%. And the median was 13.51%.
STRT's Gross Margin % is ranked worse than 81.39% of 1268
companies
in the Vehicles & Parts industry
Industry Median: 19.36
vs STRT: 10.61
Strattec Security had a gross margin of 11.39% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Strattec Security was -3.30% per year.
Strattec Security Gross Margin % Historical Data
The historical data trend for Strattec Security'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 Auto Parts subindustry, Strattec Security'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.
Strattec Security Gross Margin % Distribution
For the Vehicles & Parts industry and Consumer Cyclical sector, Strattec Security's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Strattec Security'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
Strattec Security had a gross margin of 11.39% for the quarter that ended in Dec. 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.
Strattec Security Gross Margin % Related Terms
Thank you for viewing the detailed overview of Strattec Security's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Strattec Security (Strattec Security) Business Description
Strattec Security Corp designs develops, manufactures and markets mechanical locks, electronically enhanced locks and keys. It also produces ignition lock housings; access control products, including latches, power sliding door systems, and door handles. Strattec ships products to customer locations in the United States, Canada, Mexico, Europe, South America, Korea and China, and provides full-service aftermarket support. Strattec also supplies products for the heavy truck and recreational vehicle markets, as well as precision, die castings.
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