Gross Margin % is calculated as gross profit divided by its revenue. Astec Industries's Gross Profit for the
three
months ended in Dec. 2023 was $89 Mil. Astec Industries's Revenue for the
three
months ended in Dec. 2023 was $337 Mil. Therefore, Astec Industries's Gross Margin % for the quarter that ended in Dec. 2023 was 26.42%.
The historical rank and industry rank for Astec Industries's Gross Margin % or its related term are showing as below:
ASTE'
s Gross Margin % Range Over the Past 10 Years
Min: 11.59 Med: 22.17 Max: 24.72
Current: 24.72
During the past 13 years, the highestGross Margin % of Astec Industries was 24.72%. The lowest was 11.59%. And the median was 22.17%.
ASTE's Gross Margin % is ranked better than 52.2% of 205
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 24.22
vs ASTE: 24.72
Astec Industries had a gross margin of 26.42% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Astec Industries was 11.50% per year.
Astec Industries Gross Margin % Historical Data
The historical data trend for Astec Industries'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 Farm & Heavy Construction Machinery subindustry, Astec Industries'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.
Astec Industries Gross Margin % Distribution
For the Farm & Heavy Construction Machinery industry and Industrials sector, Astec Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Astec Industries'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.
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
Astec Industries had a gross margin of 26.42% for the quarter that ended in Dec. 2023 => 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.
Astec Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of Astec Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Astec Industries (Astec Industries) Business Description
Astec Industries Inc designs and manufactures equipment and components used primarily in road construction and other development activities. Its products are used through the entire process of building roads, from mining and crushing materials to creating the road surface. The company manufactures a line of plants, pavers, vehicles, and machines to mix and transform materials into construction components. It has two operating segments: infrastructure solutions and materials solutions. The majority of sales are derived from the United States. Its customers are asphalt producers, highway and heavy equipment contractors, ready mix concrete producers, demolition recycling markets, sand and gravel producers, open mine operators, quarry operators, and others.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ASTE has been successfully added to your 