Gross Margin % is calculated as gross profit divided by its revenue. Woodward's Gross Profit for the
three
months ended in Dec. 2024 was $190 Mil. Woodward's Revenue for the
three
months ended in Dec. 2024 was $773 Mil. Therefore, Woodward's Gross Margin % for the quarter that ended in Dec. 2024 was 24.54%.
The historical rank and industry rank for Woodward's Gross Margin % or its related term are showing as below:
WWD'
s Gross Margin % Range Over the Past 10 Years
Min: 22.05 Med: 25.79 Max: 28.23
Current: 26.03
During the past 13 years, the highestGross Margin % of Woodward was 28.23%. The lowest was 22.05%. And the median was 25.79%.
WWD's Gross Margin % is ranked better than 50.66% of 304
companies
in the Aerospace & Defense industry
Industry Median: 25.88
vs WWD: 26.03
Woodward had a gross margin of 24.54% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Woodward was 0.00% per year.
Woodward Gross Margin % Historical Data
The historical data trend for Woodward'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 Woodward's Gross Margin %
For the Aerospace & Defense subindustry, Woodward'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.
Woodward's Gross Margin % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Woodward's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Woodward'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.
Woodward (NAS:WWD) 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
Woodward had a gross margin of 24.54% 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.
Woodward Gross Margin % Related Terms
Thank you for viewing the detailed overview of Woodward's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Woodward Inc is an independent designer, manufacturer, and service provider of control solutions for the aerospace and industrial markets. It designs, produces, and services reliable, efficient, low-emission, and high-performance energy control products for diverse applications in challenging environments. The company operates in two segments, Aerospace and Industrial. The Aerospace segment provides fuel pumps, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servo controls, motors, and sensors for aircraft. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors.
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