iRobot (NAS:IRBT) Gross Margin %

: 22.62% (As of Jun. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. iRobot's Gross Profit for the three months ended in Jun. 2023 was $54 Mil. iRobot's Revenue for the three months ended in Jun. 2023 was $237 Mil. Therefore, iRobot's Gross Margin % for the quarter that ended in Jun. 2023 was 22.62%.

Warning Sign:

iRobot Corp gross margin has been in long-term decline. The average rate of decline per year is -9.7%.

The historical rank and industry rank for iRobot's Gross Margin % or its related term are showing as below:

IRBT' s Gross Margin % Range Over the Past 10 Years
Min: 24.37 Med: 46.59 Max: 50.84
Current: 24.37

During the past 13 years, the highest Gross Margin % of iRobot was 50.84%. The lowest was 24.37%. And the median was 46.59%.

IRBT's Gross Margin % is ranked worse than
62.96% of 405 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 28.26 vs IRBT: 24.37

iRobot had a gross margin of 22.62% for the quarter that ended in Jun. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for iRobot was -9.70% per year.

iRobot Gross Margin % Historical Data

The historical data trend for iRobot'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.

* Premium members only.

iRobot Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

50.84

44.80

46.86

35.16

29.58

iRobot Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Gross Margin %																31.70	27.47	23.81	22.80	22.62

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, iRobot'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.

Annual Data Quarterly Data

iRobot Gross Margin % Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, iRobot's Gross Margin % distribution charts can be found below:

* The bar in red indicates where iRobot's Gross Margin % falls in comparison to its industry or sector. The grey bar indicates the Gross Margin %'s extreme value range as defined by GuruFocus.

iRobot Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

iRobot's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	350.1	/	1183.383
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1183.383 - 833.29)	/	1183.383
	=	29.58 %

iRobot's Gross Margin for the quarter that ended in Jun. 2023 is calculated as

Gross Margin % (Q: Jun. 2023 )	=	Gross Profit (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	53.5	/	236.568
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(236.568 - 183.066)	/	236.568
	=	22.62 %

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.

iRobot (NAS:IRBT) 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

iRobot had a gross margin of 22.62% for the quarter that ended in Jun. 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.

iRobot Gross Margin % Related Terms

Thank you for viewing the detailed overview of iRobot's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

iRobot (NAS:IRBT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » iRobot Corp (NAS:IRBT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

I8R:Germany I8R:Germany I8R:Germany IRBT:Austria

Address

8 Crosby Drive, Bedford, MA, USA, 01730

Website

https://www.irobot.com

iRobot Corp is a united state based consumer robot company. It designs and builds robots that assist consumers with the solutions for the activities to be carried both inside and outside of the home. The company's consumer robot comprises a portfolio of solutions which includes cleaning, mapping and navigation, human-robot interaction, and physical solutions. The company operates in the business segment of Consumer robots. The consumer robot products are provided to the consumers by retail businesses and online store. The company derives its revenue from the product sales. It sells the products across the United States and around the world.

Executives

Karen Golz	director	ONE TECHNOLOGY WAY, NORWOOD MA 02062
Jean Jacques Blanc	officer: Chief Commercial Officer	IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
Faris Habbaba	officer: Chief R&D Officer	IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
Julie Zeiler	officer: EVP, Chief Financial Officer	C/O IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
Karian Wong	officer: VP, Finance	C/O IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
Timothy Saeger	officer: EVP Engineering	C/O IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
David Keith Hartsfield	officer: Chief Product Officer	C/O IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
Eva Manolis	director	C/O SHUTTERFLY, INC., 2800 BRIDGE PARKWAY, REDWOOD CITY CA 94065
Ruey Bin Kao	director	CHINA HOLDINGS ACQUISITION CORP., 33 RIVERSIDE AVENUE, 5TH FLOOR, WESTPORT CT 06880
Elisha W Finney	director	C/O VARIAN MEDICAL SYSTEMS, INC, 3100 HANSEN WAY M/S E-327, PALO ALTO CA 94304
Andrew Miller	director	111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Michael Bell	director	C/O SILVER SPRING NETWORKS, INC., 555 BROADWAY STREET, REDWOOD CITY CA 94063
Mohamad Ali	director	2 AVENUE DE LAFAYETTE, BOSTON MA 02111
Michelle Stacy	director	33 COFFEE LANE, WATERBURY VT 05676
Christian Cerda	officer: SVP & GM, Home Robots	IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01930