OSRAM Licht AG gross margin has been in long-term decline. The average rate of decline per year is -7.8%.
The historical rank and industry rank for OSRAM Licht AG's Gross Margin % or its related term are showing as below:
XSWX:OSR'
s Gross Margin % Range Over the Past 10 Years
Min: 21.39 Med: 29.79 Max: 35.75
Current: 24.68
During the past 13 years, the highestGross Margin % of OSRAM Licht AG was 35.75%. The lowest was 21.39%. And the median was 29.79%.
XSWX:OSR's Gross Margin % is ranked worse than 55.67% of 2926
companies
in the Industrial Products industry
Industry Median: 26.54
vs XSWX:OSR: 24.68
OSRAM Licht AG had a gross margin of 25.74% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for OSRAM Licht AG was -7.80% per year.
OSRAM Licht AG Gross Margin % Historical Data
The historical data trend for OSRAM Licht AG'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 OSRAM Licht AG's Gross Margin %
For the Electrical Equipment & Parts subindustry, OSRAM Licht AG'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.
OSRAM Licht AG's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, OSRAM Licht AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where OSRAM Licht AG'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.
OSRAM Licht AG (XSWX:OSR) 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
OSRAM Licht AG had a gross margin of 25.74% for the quarter that ended in Mar. 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.
OSRAM Licht AG Gross Margin % Related Terms
Thank you for viewing the detailed overview of OSRAM Licht AG's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
OSRAM Licht AG is a Germany-based company that manufactures & distributes lighting fixtures & products, including lamps, lighting systems, light-emitting diodes, & other Opto semiconductors, light management systems, & outdoor lighting solutions. The firm operates into two segments. The semiconductor segment concentrate on semiconductor-based products & solutions (incl.LED) for the automotive, consumer, industrial & medical technology markets. The Lamps & Systems segment comprises lamps & lighting systems focusing on the automotive including traditional lighting technologies & industrial end markets. The majority of revenue is from the Semiconductors segment. Geographically, it operates in EMEA (Europe, Middle East, & Africa), the Americas (North & South America), & Asia/Pacific.
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