Gross Margin % is calculated as gross profit divided by its revenue. Tetra Tech's Gross Profit for the
three
months ended in Dec. 2023 was $190 Mil. Tetra Tech's Revenue for the
three
months ended in Dec. 2023 was $1,228 Mil. Therefore, Tetra Tech's Gross Margin % for the quarter that ended in Dec. 2023 was 15.51%.
The historical rank and industry rank for Tetra Tech's Gross Margin % or its related term are showing as below:
TTEK'
s Gross Margin % Range Over the Past 10 Years
Min: 11.37 Med: 13.44 Max: 16.43
Current: 15.7
During the past 13 years, the highestGross Margin % of Tetra Tech was 16.43%. The lowest was 11.37%. And the median was 13.44%.
TTEK's Gross Margin % is ranked worse than 58.2% of 1610
companies
in the Construction industry
Industry Median: 19.125
vs TTEK: 15.70
Tetra Tech had a gross margin of 15.51% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tetra Tech was 5.20% per year.
Tetra Tech Gross Margin % Historical Data
The historical data trend for Tetra Tech'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 Tetra Tech's Gross Margin %
For the Engineering & Construction subindustry, Tetra Tech'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.
Tetra Tech's Gross Margin % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Tetra Tech's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tetra Tech'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.
Tetra Tech (NAS:TTEK) 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
Tetra Tech had a gross margin of 15.51% 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.
Tetra Tech Gross Margin % Related Terms
Thank you for viewing the detailed overview of Tetra Tech's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tetra Tech Inc provides consulting and engineering services for environmental, infrastructure, resource management, energy, and international development markets. It specializes in providing water-related services for public and private clients. It designs infrastructure, facilities, and other structures with complex plans and resource management. Tetra Tech has two reportable segments. Its Government Services Group (GSG) reportable segment primarily includes activities with U.S. government clients (federal, state and local) and activities with development agencies worldwide. Commercial/International Services Group (CIG) reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies.
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