Gross Margin % is calculated as gross profit divided by its revenue. Invensys's Gross Profit for the
six
months ended in Sep. 2013 was €369 Mil. Invensys's Revenue for the
six
months ended in Sep. 2013 was €1,023 Mil. Therefore, Invensys's Gross Margin % for the quarter that ended in Sep. 2013 was 36.08%.
The historical rank and industry rank for Invensys's Gross Margin % or its related term are showing as below:
FRA:SBPD's Gross Margin % is not ranked *
in the Industrial Products industry.
Industry Median: 26.57 * Ranked among companies with meaningful Gross Margin % only.
Invensys had a gross margin of 36.08% for the quarter that ended in Sep. 2013 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Invensys was 0.00% per year.
Invensys Gross Margin % Historical Data
The historical data trend for Invensys'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 Invensys's Gross Margin %
For the Specialty Industrial Machinery subindustry, Invensys'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.
Invensys's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Invensys's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Invensys'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.
Invensys (FRA:SBPD) 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
Invensys had a gross margin of 36.08% for the quarter that ended in Sep. 2013 => 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.
Invensys Gross Margin % Related Terms
Thank you for viewing the detailed overview of Invensys's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Invensys PLC is a technology company that works in partnership with industrial and commercial customers to design and supply advanced technologies that optimise operational performance and proï¬tability. The Company is grouped into four new business segments - Software, Industrial Automation, Energy Controls and Appliance. The Company's divisions include; Invensys Operations Management which is a technology, software and consulting business that creates and applies technologies to enable the safe and efï¬cient operation of industrial and commercial operations such as oil reï¬neries, fossil fuel and nuclear power plants, petrochemical works and other manufacturing sites. Invensys Controls designs, engineers and manufactures products, components, systems and services used in appliances, heating, air conditioning/cooling and refrigeration products across a range of industries in residential and commercial markets. The Software segment consists of the software businesses previously within Invensys Operations Management and includes Wonderware, SimSciTM and Avantis brands. Industrial Automation segment consists of the systems businesses of our Foxboro distributed control systems (DCS) and Triconex safety systems with the addition of the Foxboro measurement and instrumentation products previously within the equipment business of Invensys Operations Management. Energy Controls segment consists of the Eurotherm and IMServ businesses previously included within the equipment business of Invensys Operations Management, together with the residential heating and commercial businesses that were formerly part of Invensys Controls. Appliance segment consists of the Appliance controls line of business previously within Invensys Controls, together with the appliance replacement parts business formerly within Wholesale, also part of the former Invensys Controls.
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