One Stop Systems Inc gross margin has been in long-term decline. The average rate of decline per year is -2%.
The historical rank and industry rank for One Stop Systems's Gross Margin % or its related term are showing as below:
FRA:5MU'
s Gross Margin % Range Over the Past 10 Years
Min: 28 Med: 30.61 Max: 33.28
Current: 29.26
During the past 9 years, the highestGross Margin % of One Stop Systems was 33.28%. The lowest was 28.00%. And the median was 30.61%.
FRA:5MU's Gross Margin % is ranked better than 60.25% of 2438
companies
in the Hardware industry
Industry Median: 24.405
vs FRA:5MU: 29.26
One Stop Systems had a gross margin of 29.42% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for One Stop Systems was -2.00% per year.
One Stop Systems Gross Margin % Historical Data
The historical data trend for One Stop Systems'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 One Stop Systems's Gross Margin %
For the Computer Hardware subindustry, One Stop Systems'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.
One Stop Systems's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, One Stop Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where One Stop Systems'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.
One Stop Systems (FRA:5MU) 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
One Stop Systems had a gross margin of 29.42% for the quarter that ended in Mar. 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.
One Stop Systems Gross Margin % Related Terms
Thank you for viewing the detailed overview of One Stop Systems's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
One Stop Systems Inc designs and manufactures innovative Artificial intelligence (AI) Transportable edge computing modules and systems, including ruggedized servers, compute accelerators, expansion systems, flash storage arrays and Ion Accelerator SAN, NAS and data recording software for AI workflows. These products are used for AI data set capture, training, and large-scale inference in the defense, oil and gas, mining, autonomous vehicles and rugged entertainment applications. The company enables AI on the Fly by bringing AI datacenter performance to the edge, especially on mobile platforms, and by addressing the entire AI workflow, from high-speed data acquisition to deep learning, training and inference. Its products are available directly or through global distributors.
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