AmpliTech Group Inc gross margin has been in long-term decline. The average rate of decline per year is -4.7%.
The historical rank and industry rank for AmpliTech Group's Gross Margin % or its related term are showing as below:
AMPG'
s Gross Margin % Range Over the Past 10 Years
Min: 24.51 Med: 48.7 Max: 59.38
Current: 46.39
During the past 13 years, the highestGross Margin % of AmpliTech Group was 59.38%. The lowest was 24.51%. And the median was 48.70%.
AMPG's Gross Margin % is ranked better than 85.16% of 2439
companies
in the Hardware industry
Industry Median: 24.41
vs AMPG: 46.39
AmpliTech Group had a gross margin of 50.07% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AmpliTech Group was -4.70% per year.
AmpliTech Group Gross Margin % Historical Data
The historical data trend for AmpliTech Group'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 AmpliTech Group's Gross Margin %
For the Communication Equipment subindustry, AmpliTech Group'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.
AmpliTech Group's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, AmpliTech Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AmpliTech Group'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.
AmpliTech Group (NAS:AMPG) 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
AmpliTech Group had a gross margin of 50.07% 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.
AmpliTech Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of AmpliTech Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
AmpliTech Group (AmpliTech Group) Business Description
AmpliTech Group Inc designs, develop, engineers, & assembles micro-wave component-based amplifiers that meet individual customer specifications. Its products consist of RF amplifiers & related subsystems, operating at multiple frequencies from 50kHz to 44GHz, including Low Noise Amplifiers, Medium Power Amplifiers, oscillators, filters, & custom assemblies such as MMIC (Monolithic Microwave Integrated Circuit) and MIC (Microwave Integrated Circuit) designs. It also offers non-recurring engineering services on a project-by-project basis, for a predetermined fixed contractual amount, or on a time-plus-material basis. It also operates as a manufacturer, & distributor of cryogenic microwave amplifiers, RF designs, & applications for Wireless Networks & the future of Wireless Communication.
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