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DCO (Ducommun) Gross Margin % : 26.15% (As of Sep. 2024)


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What is Ducommun Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ducommun's Gross Profit for the three months ended in Sep. 2024 was $52.7 Mil. Ducommun's Revenue for the three months ended in Sep. 2024 was $201.4 Mil. Therefore, Ducommun's Gross Margin % for the quarter that ended in Sep. 2024 was 26.15%.


The historical rank and industry rank for Ducommun's Gross Margin % or its related term are showing as below:

DCO' s Gross Margin % Range Over the Past 10 Years
Min: 15.13   Med: 19.87   Max: 24.64
Current: 24.64


During the past 13 years, the highest Gross Margin % of Ducommun was 24.64%. The lowest was 15.13%. And the median was 19.87%.

DCO's Gross Margin % is ranked worse than
52.67% of 300 companies
in the Aerospace & Defense industry
Industry Median: 26.03 vs DCO: 24.64

Ducommun had a gross margin of 26.15% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Ducommun was 1.10% per year.


Ducommun Gross Margin % Historical Data

The historical data trend for Ducommun'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.

Ducommun Gross Margin % Chart

Ducommun Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.11 21.90 22.07 20.25 21.56

Ducommun Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.73 21.69 24.60 26.01 26.15

Competitive Comparison of Ducommun's Gross Margin %

For the Aerospace & Defense subindustry, Ducommun'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.


Ducommun's Gross Margin % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Ducommun's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ducommun's Gross Margin % falls into.



Ducommun Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Ducommun's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=163.2 / 756.992
=(Revenue - Cost of Goods Sold) / Revenue
=(756.992 - 593.805) / 756.992
=21.56 %

Ducommun's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=52.7 / 201.412
=(Revenue - Cost of Goods Sold) / Revenue
=(201.412 - 148.736) / 201.412
=26.15 %

* 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.


Ducommun  (NYSE:DCO) 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

Ducommun had a gross margin of 26.15% for the quarter that ended in Sep. 2024 => 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.


Ducommun Gross Margin % Related Terms

Thank you for viewing the detailed overview of Ducommun's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ducommun Business Description

Traded in Other Exchanges
Address
200 Sandpointe Avenue, Suite 700, Santa Ana, CA, USA, 92707-5759
Ducommun Inc provides engineering & manufacturing services for high-performance products & high-cost-of failure applications used primarily in the aerospace and defense, industrial, medical & other industries. The company's reportable segments are Structural Systems & Electronic Systems. Structural Systems designs, engineers and manufactures various sizes of complex contoured aerostructure components and assemblies and supplies composite and metal bonded structures and assemblies. Electronic Systems designs, engineers and manufactures high-reliability electronic and electromechanical products used in worldwide technology-driven markets including A&D and Industrial end-use markets. It generates maximum of its revenue from the Electronic Systems.
Executives
Stephen G Oswald director, officer: President & CEO 23301 WILMINGTON AVENUE, CARSON CA 90745
Jerry L Redondo officer: VP, Operational Excellence DUCOMMUN INCORPORATED, 23301 WILMINGTON AVE., CARSON CA 90745-6209
Suman B. Mookerji officer: Sr. V.P., C.F.O. 200 SANDPOINTE AVENUE, SUITE 700, SANTA ANA CA 92707
Christopher D. Wampler officer: VP, Controller and CAO 23301 WILMINGTON AVENUE, CARSON CA 90745
Laureen S. Gonzalez officer: VP & Chief HR Officer 200 SANDPOINTE AVENUE, SUITE 700, SANTA ANA CA 92707
Robert C Ducommun director 1155 PARK AVE, APT 1-SW, NEW YORK NY 10128-1209
Samara A Strycker director 2701 NAVISTAR DRIVE, LISLE IL 60532
Rose F Rogers officer: VP, Human Resources 23301 WILMINGTON AVE., CARSON CA 90745-6209
Sheila G. Kramer director P.O. BOX 1299, MINNEAPOLIS MN 55440-1299
Robert D Paulson director AEROSTAR CAPITAL LLC, 590 SANDHILL CRANE RD., #1270, WILSON WY 83014-1270
Dean M Flatt director 31 SUMMER HILL RD., WAYNE NJ 07470
Rajiv A. Tata officer: V.P., General Counsel 200 SANDPOINTE AVENUE, SUITE 700, SANTA ANA CA 92707
Shirley Drazba director 200 SANDPOINTE AVENUE, #700, SANTA ANA CA 92707
Anthony J Reardon other: Pres., Ducommun AeroStructures DUCOMMUN INCORPORATED, 23301 WILMINGTON AVE., CARSON CA 90745
James S Heiser officer: VP, CFO & Gen. Cnsl. C/O DUCOMMUN INC, 23301 WILMINGTON AVENUE, CARSON CA 90745-6209