Gross Margin % is calculated as gross profit divided by its revenue. Trimble's Gross Profit for the
three
months ended in Dec. 2023 was $577 Mil. Trimble's Revenue for the
three
months ended in Dec. 2023 was $932 Mil. Therefore, Trimble's Gross Margin % for the quarter that ended in Dec. 2023 was 61.92%.
The historical rank and industry rank for Trimble's Gross Margin % or its related term are showing as below:
TRMB'
s Gross Margin % Range Over the Past 10 Years
Min: 52.05 Med: 54.32 Max: 61.41
Current: 61.41
During the past 13 years, the highestGross Margin % of Trimble was 61.41%. The lowest was 52.05%. And the median was 54.32%.
TRMB's Gross Margin % is ranked better than 94.38% of 2438
companies
in the Hardware industry
Industry Median: 24.5
vs TRMB: 61.41
Trimble had a gross margin of 61.92% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Trimble was 2.30% per year.
Trimble Gross Margin % Historical Data
The historical data trend for Trimble'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 Trimble's Gross Margin %
For the Scientific & Technical Instruments subindustry, Trimble'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.
Trimble's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Trimble's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Trimble'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.
Trimble (NAS:TRMB) Gross Margin % Explanation
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
Trimble had a gross margin of 61.92% for the quarter that ended in Dec. 2023 => 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.
Trimble Gross Margin % Related Terms
Thank you for viewing the detailed overview of Trimble's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Trimble Inc provides location-based solutions that are used in global positioning system (GPS), laser, optical and inertial technologies. Its products portfolio includes 3D laser scanning, flow and application control systems, monitoring systems, water management, and navigation infrastructure. It also manufactures laser and optics-based products, and GPS products. The company serves various industries which include agriculture, architecture, civil engineering, survey and land administration, construction, geospatial among others. The company operates in four reportable segments namely, Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. It derives most of its revenues from the US and Europe with the rest coming from the Asia Pacific and other markets.
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