Gross Margin % is calculated as gross profit divided by its revenue. V2X's Gross Profit for the
three
months ended in Sep. 2024 was $91 Mil. V2X's Revenue for the
three
months ended in Sep. 2024 was $1,082 Mil. Therefore, V2X's Gross Margin % for the quarter that ended in Sep. 2024 was 8.45%.
The historical rank and industry rank for V2X's Gross Margin % or its related term are showing as below:
VVX'
s Gross Margin % Range Over the Past 10 Years
Min: 7.93 Med: 8.99 Max: 10.2
Current: 7.93
During the past 13 years, the highestGross Margin % of V2X was 10.20%. The lowest was 7.93%. And the median was 8.99%.
VVX's Gross Margin % is ranked worse than 90% of 300
companies
in the Aerospace & Defense industry
Industry Median: 26.03
vs VVX: 7.93
V2X had a gross margin of 8.45% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for V2X was 0.00% per year.
V2X Gross Margin % Historical Data
The historical data trend for V2X'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 Aerospace & Defense subindustry, V2X'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.
V2X's Gross Margin % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, V2X's Gross Margin % distribution charts can be found below:
* The bar in red indicates where V2X'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.
V2X (NYSE:VVX) 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
V2X had a gross margin of 8.45% for the quarter that ended in Sep. 2024 => No sustainable 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.
V2X Gross Margin % Related Terms
Thank you for viewing the detailed overview of V2X's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
V2X Inc is a U.S.-based company that provides services to the U.S. government. It operates as one segment and offers facility and logistics services and information technology mission support and engineering and digital integration services. The information technology and network communications capabilities consist of communications systems operations and maintenance, management and service support, systems installation and activation, system-of-systems engineering and software development, and mission support for the department of defense. The facility and logistics service include airfield management, ammunition management, civil engineering, communications, emergency services, life support activities, public works, security, transportation operations, and others.
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