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MPAA (Motorcar Parts of America) Gross Margin % : 24.11% (As of Dec. 2024)


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What is Motorcar Parts of America Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Motorcar Parts of America's Gross Profit for the three months ended in Dec. 2024 was $44.9 Mil. Motorcar Parts of America's Revenue for the three months ended in Dec. 2024 was $186.2 Mil. Therefore, Motorcar Parts of America's Gross Margin % for the quarter that ended in Dec. 2024 was 24.11%.

Warning Sign:

Motorcar Parts of America Inc gross margin has been in long-term decline. The average rate of decline per year is -3%.


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

MPAA' s Gross Margin % Range Over the Past 10 Years
Min: 16.68   Med: 21.17   Max: 27.7
Current: 19.92


During the past 13 years, the highest Gross Margin % of Motorcar Parts of America was 27.70%. The lowest was 16.68%. And the median was 21.17%.

MPAA's Gross Margin % is ranked worse than
50.08% of 1288 companies
in the Vehicles & Parts industry
Industry Median: 19.935 vs MPAA: 19.92

Motorcar Parts of America had a gross margin of 24.11% for the quarter that ended in Dec. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Motorcar Parts of America was -3.00% per year.


Motorcar Parts of America Gross Margin % Historical Data

The historical data trend for Motorcar Parts of America'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.

Motorcar Parts of America Gross Margin % Chart

Motorcar Parts of America Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.10 20.24 18.12 16.68 18.47

Motorcar Parts of America Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 17.48 18.36 17.17 19.83 24.11

Competitive Comparison of Motorcar Parts of America's Gross Margin %

For the Auto Parts subindustry, Motorcar Parts of America'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.


Motorcar Parts of America's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcar Parts of America's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Motorcar Parts of America's Gross Margin % falls into.


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Motorcar Parts of America Gross Margin % Calculation

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

Motorcar Parts of America's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=132.6 / 717.684
=(Revenue - Cost of Goods Sold) / Revenue
=(717.684 - 585.133) / 717.684
=18.47 %

Motorcar Parts of America's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=44.9 / 186.176
=(Revenue - Cost of Goods Sold) / Revenue
=(186.176 - 141.294) / 186.176
=24.11 %

* 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.


Motorcar Parts of America  (NAS:MPAA) 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

Motorcar Parts of America had a gross margin of 24.11% for the quarter that ended in Dec. 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.


Motorcar Parts of America Gross Margin % Related Terms

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


Motorcar Parts of America Business Description

Traded in Other Exchanges
Address
2929 California Street, Torrance, CA, USA, 90503
Motorcar Parts of America Inc is a supplier of automotive aftermarket non-discretionary replacement parts and test solutions and diagnostic equipment. It operate in the non-discretionary automotive aftermarket for replacement hard parts in North America and includes products such as light-duty rotating electrical products, wheel hub products, brake-related products, and turbochargers. In addition, it sell test solutions and diagnostic equipment. The company operates in three segments Hard Parts, Test Solutions and Diagnostic Equipment and Heavy Duty. Key revenue is generated from Hard Parts, which includes (i) light duty rotating electric products such as alternators and starters, (ii) wheel hub products, (iii) brake-related products, including brake calipers, brake boosters, brake rotors.
Executives
Joseph Edwin Ferguson director 5103 SOUTH GARTH AVENUE, LOS ANGELES CA 90056
David Bryan director 605 STAPP ROAD, BOULDER CREEK CA 95006
Philip Gay director 6300 CANOGA AVENUE, SUITE 1700, WOODLAND HILLS CA 91367
Bison Capital Partners Vi, L.p. director 233 WILSHIRE BOULEVARD, SUITE 425, SANTA MONICA CA 90401
Bison Capital Partners Vi-a, L.p. director 233 WILSHIRE BOULEVARD, SUITE 425, SANTA MONICA CA 90401
Douglas B Trussler director 39 EAST UNION STREET, PASADENA CA 91103
Patricia W Warfield director 2929 CALIFORNIA STREET, TORRANCE CA 90503
Rudolph J Borneo director 50 O'FARRELL STREET, SAN FRANCISCO CA 94108
Richard K Mochulsky officer: Vice President, Sales 2929 CALIFORNIA STREET, TORRANCE CA 90505
Joffe Selwyn director, officer: President, CEO & Chairman
Kamlesh Shah officer: Chief Accounting Officer C/O MOTORCAR PARTS OF AMERICA, INC., 2929 CALIFORNIA STREET, TORRANCE CA 90503
David Sung Lee officer: CFO 2929 CALIFORNIA STREET, TORRANCE CA 90503
Duane Franklin Miller director 7811 FIELDSTONE RIDGE, CLARKSTON MI 48348
Jamy P. Rankin director C/O MOTOR CAR PARTS OF AMERICA, INC., 2929 CALIFORNIA STREET, TORRANCE CA 90503
Juliet Lynn Stone officer: VP, Gen Counsel and Secretary C/O MOTORCAR PARTS OF AMERICA, INC., 2020 CALIFORNIA STREET, TORRANCE CA 90503