Mercury Systems Inc gross margin has been in long-term decline. The average rate of decline per year is -11.1%.
The historical rank and industry rank for Mercury Systems's Gross Margin % or its related term are showing as below:
MRCY'
s Gross Margin % Range Over the Past 10 Years
Min: 23.45 Med: 44.26 Max: 48.63
Current: 25.61
During the past 13 years, the highestGross Margin % of Mercury Systems was 48.63%. The lowest was 23.45%. And the median was 44.26%.
MRCY's Gross Margin % is ranked worse than 50.33% of 304
companies
in the Aerospace & Defense industry
Industry Median: 25.735
vs MRCY: 25.61
Mercury Systems had a gross margin of 27.26% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Mercury Systems was -11.10% per year.
Mercury Systems Gross Margin % Historical Data
The historical data trend for Mercury 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 Mercury Systems's Gross Margin %
For the Aerospace & Defense subindustry, Mercury 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.
Mercury Systems's Gross Margin % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Mercury Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mercury 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.
Mercury Systems (NAS:MRCY) 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
Mercury Systems had a gross margin of 27.26% 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.
Mercury Systems Gross Margin % Related Terms
Thank you for viewing the detailed overview of Mercury Systems's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mercury Systems Inc is a commercial technology company serving the aerospace and defense industry. The company envisions, creates, and delivers secure open architecture solutions powering a broad range of mission-critical applications in challenging and demanding environments. Its Mercury Processing Platform spans the full breadth of signal processing from radio frequency front end to the human-machine interface to convert meaningful data, gathered in remote and hostile environments, into critical decisions. The company manufactures components, products, modules, and subsystems and sells to defense prime contractors, the U.S. government, original equipment manufacturers, and commercial aerospace companies. Geographically, it derives maximum revenue from the United States.
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