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Focus Universal (Focus Universal) Gross Margin % : -51.42% (As of Dec. 2023)


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What is Focus Universal Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Focus Universal's Gross Profit for the three months ended in Dec. 2023 was $-0.15 Mil. Focus Universal's Revenue for the three months ended in Dec. 2023 was $0.28 Mil. Therefore, Focus Universal's Gross Margin % for the quarter that ended in Dec. 2023 was -51.42%.

Warning Sign:

Focus Universal Inc gross margin has been in long-term decline. The average rate of decline per year is -23.9%.


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

FCUV' s Gross Margin % Range Over the Past 10 Years
Min: 6.5   Med: 19.93   Max: 68.75
Current: 8.85


During the past 11 years, the highest Gross Margin % of Focus Universal was 68.75%. The lowest was 6.50%. And the median was 19.93%.

FCUV's Gross Margin % is ranked worse than
86.17% of 2437 companies
in the Hardware industry
Industry Median: 24.5 vs FCUV: 8.85

Focus Universal had a gross margin of -51.42% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Focus Universal was -23.90% per year.


Focus Universal Gross Margin % Historical Data

The historical data trend for Focus Universal'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.

Focus Universal Gross Margin % Chart

Focus Universal Annual Data
Trend Mar14 Mar15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.08 16.91 20.71 6.50 8.94

Focus Universal Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -23.94 23.31 30.70 36.79 -51.42

Competitive Comparison of Focus Universal's Gross Margin %

For the Scientific & Technical Instruments subindustry, Focus Universal'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.


Focus Universal's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Focus Universal's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Focus Universal's Gross Margin % falls into.



Focus Universal Gross Margin % Calculation

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

Focus Universal's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=0.1 / 1.052
=(Revenue - Cost of Goods Sold) / Revenue
=(1.052 - 0.958) / 1.052
=8.94 %

Focus Universal's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-0.1 / 0.282
=(Revenue - Cost of Goods Sold) / Revenue
=(0.282 - 0.427) / 0.282
=-51.42 %

* 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.


Focus Universal  (NAS:FCUV) 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

Focus Universal had a gross margin of -51.42% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


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.


Focus Universal Gross Margin % Related Terms

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


Focus Universal (Focus Universal) Business Description

Traded in Other Exchanges
N/A
Address
2311 East Locust Court, Ontario, CA, USA, 91761
Focus Universal Inc develops and manufactures universal smart device. Its products portfolio include Universal Smart Instrumentation Platform, Ubiquitor, Universal Smart Controller, and Sensors. The company also supplies various air filtration systems. The Company consists of three types of operations- Focus and Focus Shenzhen (Corporate), Perfecular and Lusher (IoT Products), AVX (IoT Installation Services). Majority of revenue is generated from IoT Installation Services. IoT Installation Services segment is an IoT installation and management company specializing in high performance and easy to use audio/video, home theater, lighting control, automation, and integration.
Executives
Sheri Lofgren director C/O LOGICAL CHOICE CORPORATION, 1045 PROGRESS CIRCLE, LAWRENCEVILLE GA 30043
Michael Ross Pope director 1045 PROGRESS CIRCLE, LAWRENCEVILLE, GEORGIA GA 30043
Gregory S Butterfield director 3301 N. THANKSGIVING WAY, SUITE 500, LEHI UT 84043
Carine S. Clark director 772 UTAH VALLEY DRIVE, AMERICAN FORK UT 84003
Duncan Lee officer: Chief Financial Officer 20511 EAST WALNUT DRIVE NORTH, WALNUT CA 91789
Jennifer Lingjie Gu director, 10 percent owner 2501 CROW FOOT LANE, DIAMOND BAR CA 91748
Edward Shihai Lee director, 10 percent owner, officer: President 2501 CROW FOOT LANE, DIAMOND BAR CA 91748
Desheng Wang director, 10 percent owner, officer: CEO and Secretary 140 SOUTH ROOSEVELT AVENUE, PASADENA CA 91107