Gross Margin % is calculated as gross profit divided by its revenue. Visteon's Gross Profit for the
three
months ended in Dec. 2023 was $130 Mil. Visteon's Revenue for the
three
months ended in Dec. 2023 was $990 Mil. Therefore, Visteon's Gross Margin % for the quarter that ended in Dec. 2023 was 13.13%.
Warning Sign:
Visteon Corp gross margin has been in long-term decline. The average rate of decline per year is -2.7%.
The historical rank and industry rank for Visteon's Gross Margin % or its related term are showing as below:
VC'
s Gross Margin % Range Over the Past 10 Years
Min: 9.16 Med: 12.74 Max: 15.61
Current: 12.32
During the past 13 years, the highestGross Margin % of Visteon was 15.61%. The lowest was 9.16%. And the median was 12.74%.
VC's Gross Margin % is ranked worse than 75.45% of 1267
companies
in the Vehicles & Parts industry
Industry Median: 19.36
vs VC: 12.32
Visteon had a gross margin of 13.13% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Visteon was -2.70% per year.
Visteon Gross Margin % Historical Data
The historical data trend for Visteon'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 Visteon's Gross Margin %
For the Auto Parts subindustry, Visteon'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.
Visteon's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Visteon's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Visteon'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.
Visteon (NAS:VC) 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
Visteon had a gross margin of 13.13% 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.
Visteon Gross Margin % Related Terms
Thank you for viewing the detailed overview of Visteon's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Visteon Corp is an automotive supplier. It manufactures electronics products for original equipment vehicle manufacturers including Ford, Nissan, Renault, Mazda, BMW, General Motors, and Honda. The company offers information displays, instrument clusters, head-up displays, infotainment systems, telematics solutions and Smartcore. The Company's reportable segment is Electronics. The Electronics segment provides vehicle cockpit electronics products to customers, including digital instrument clusters, domain controllers with integrated advance driver assistance systems, displays, Android-based infotainment systems, and battery management systems. Geographically, it operates in North America, Europe, China, Asia-Pacific and South America.
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