Gross Margin % is calculated as gross profit divided by its revenue. Sono-Tek's Gross Profit for the
three
months ended in Aug. 2024 was $2.52 Mil. Sono-Tek's Revenue for the
three
months ended in Aug. 2024 was $5.16 Mil. Therefore, Sono-Tek's Gross Margin % for the quarter that ended in Aug. 2024 was 48.74%.
The historical rank and industry rank for Sono-Tek's Gross Margin % or its related term are showing as below:
SOTK'
s Gross Margin % Range Over the Past 10 Years
Min: 45.2 Med: 47.86 Max: 50.82
Current: 49.57
During the past 13 years, the highestGross Margin % of Sono-Tek was 50.82%. The lowest was 45.20%. And the median was 47.86%.
SOTK's Gross Margin % is ranked better than 87.2% of 2422
companies
in the Hardware industry
Industry Median: 24.655
vs SOTK: 49.57
Sono-Tek had a gross margin of 48.74% for the quarter that ended in Aug. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sono-Tek was 2.20% per year.
Sono-Tek Gross Margin % Historical Data
The historical data trend for Sono-Tek'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 Sono-Tek's Gross Margin %
For the Scientific & Technical Instruments subindustry, Sono-Tek'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.
Sono-Tek's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Sono-Tek's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sono-Tek'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.
Sono-Tek (NAS:SOTK) 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
Sono-Tek had a gross margin of 48.74% for the quarter that ended in Aug. 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.
Sono-Tek Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sono-Tek's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sono-Tek Corp designs and manufactures ultrasonic coating systems that apply precise, thin film coatings to a multitude of products for the microelectronics/electronics, alternative energy, medical, and industrial markets, including specialized glass applications in construction and automotive. It sells products to emerging research and development and other markets. Its ultrasonic nozzle systems use high-frequency, ultrasonic vibrations that atomize liquids into minute drops that can be applied to surfaces at low velocity providing thin layers of protective materials over a surface such as glass or metals.
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