Gross Margin % is calculated as gross profit divided by its revenue. NVE's Gross Profit for the
three
months ended in Sep. 2024 was $5.81 Mil. NVE's Revenue for the
three
months ended in Sep. 2024 was $6.76 Mil. Therefore, NVE's Gross Margin % for the quarter that ended in Sep. 2024 was 85.97%.
The historical rank and industry rank for NVE's Gross Margin % or its related term are showing as below:
NVEC'
s Gross Margin % Range Over the Past 10 Years
Min: 76.13 Med: 78.96 Max: 81.68
Current: 81.68
During the past 13 years, the highestGross Margin % of NVE was 81.68%. The lowest was 76.13%. And the median was 78.96%.
NVEC's Gross Margin % is ranked better than 97.87% of 985
companies
in the Semiconductors industry
Industry Median: 28.33
vs NVEC: 81.68
NVE had a gross margin of 85.97% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NVE was -0.90% per year.
NVE Gross Margin % Historical Data
The historical data trend for NVE'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.
For the Semiconductors subindustry, NVE'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.
NVE's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, NVE's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NVE'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.
NVE (NAS:NVEC) 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
NVE had a gross margin of 85.97% for the quarter that ended in Sep. 2024 => Durable competitive advantage
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.
NVE Gross Margin % Related Terms
Thank you for viewing the detailed overview of NVE's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
NVE Corp develops and sells devices that use spintronics, a nanotechnology that relies on electron spin. It manufactures high-performance spintronic products including sensors and couplers that are used to acquire and transmit data. The company's products include Digital sensors, Medical sensors, Rotation Sensors, GT Sensors, Angle Sensors, Analog sensors, MSOP Isolators, Passive-In Transceivers, and others. The company manufactures high-performance spintronic products including sensors and couplers. The company's designs are based on giant magnetoresistance GMR and tunneling magnetoresistance TMR combined with integrated circuitry.
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