Precision Optics's gross profit for the
three
months ended in Sep. 2024 was $1.12 Mil. Precision Optics's gross profit for the trailing twelve months (TTM) ended in Sep. 2024 was $5.45 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Precision Optics's gross profit for the
three
months ended in Sep. 2024 was $1.12 Mil. Precision Optics's Revenue for the
three
months ended in Sep. 2024 was $4.20 Mil. Therefore, Precision Optics's Gross Margin % for the quarter that ended in Sep. 2024 was 26.61%.
Precision Optics had a gross margin of 26.61% for the quarter that ended in Sep. 2024 => Competition eroding margins
During the past 13 years, the highestGross Margin % of Precision Optics was 36.75%. The lowest was 20.40%. And the median was 31.31%.
Precision Optics Gross Profit Historical Data
The historical data trend for Precision Optics's Gross Profit 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 Precision Optics's Gross Profit
For the Medical Instruments & Supplies subindustry, Precision Optics's Gross Profit, along with its competitors' market caps and Gross Profit 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.
Precision Optics's Gross Profit Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Precision Optics's Gross Profit distribution charts can be found below:
* The bar in red indicates where Precision Optics's Gross Profit falls into.
Precision Optics Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Precision Optics's Gross Profit for the fiscal year that ended in Jun. 2024 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.45 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
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
Precision Optics had a gross margin of 26.61% for the quarter that ended in Sep. 2024 => Competition eroding margins
Precision Optics Gross Profit Related Terms
Thank you for viewing the detailed overview of Precision Optics's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Precision Optics Corp Inc is engaged in designing, developing, and manufacturing advanced optical instruments. It manufactures medical products such as endoscopes and endocouplers which incorporate various optical technologies for use in a variety of minimally invasive surgical and diagnostic procedures. The company also produces endoscopes for various applications as well as designs and manufactures custom optical medical devices to satisfy customers' specific requirements. In addition, the company manufactures and sells components and assemblies specially designed for industrial and military use. The company earns the majority of its revenue from the United States.
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