Gross Margin % is calculated as gross profit divided by its revenue. Servotronics's Gross Profit for the
three
months ended in Dec. 2023 was $2.77 Mil. Servotronics's Revenue for the
three
months ended in Dec. 2023 was $12.34 Mil. Therefore, Servotronics's Gross Margin % for the quarter that ended in Dec. 2023 was 22.42%.
Warning Sign:
Servotronics Inc gross margin has been in long-term decline. The average rate of decline per year is -7.7%.
The historical rank and industry rank for Servotronics's Gross Margin % or its related term are showing as below:
SVT'
s Gross Margin % Range Over the Past 10 Years
Min: 14.76 Med: 22.22 Max: 25.98
Current: 17.05
During the past 13 years, the highestGross Margin % of Servotronics was 25.98%. The lowest was 14.76%. And the median was 22.22%.
SVT's Gross Margin % is ranked worse than 76.52% of 2935
companies
in the Industrial Products industry
Industry Median: 26.44
vs SVT: 17.05
Servotronics had a gross margin of 22.42% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Servotronics was -7.70% per year.
Servotronics Gross Margin % Historical Data
The historical data trend for Servotronics'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.
* Premium members only.
Servotronics Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
21.94
16.53
14.76
15.83
17.89
Servotronics Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
7.62
8.47
14.62
21.58
22.42
Competitive Comparison
For the Electrical Equipment & Parts subindustry, Servotronics'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.
Servotronics Gross Margin % Distribution
For the Industrial Products industry and Industrials sector, Servotronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Servotronics'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
Servotronics had a gross margin of 22.42% 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.
Servotronics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Servotronics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Servotronics Inc is a U.S based company that designs, manufactures, and markets technology products consisting of control components and consumer products, consisting of knives and various types of cutlery and other edged products. The company operates in the segments of Technology Group, which is the key revenue-generating segment, and Consumer Products Group. Technology Group operations involve the design, manufacture, and marketing of servo-control components, which include torque motors, control valves, and actuators, among others for government, commercial and industrial applications. Consumer Products Group operations involve the designing, manufacturing, and marketing of a range of cutlery products for use by consumers and government agencies.
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