Gross Margin % is calculated as gross profit divided by its revenue. Quantum's Gross Profit for the
three
months ended in Jun. 2023 was $34.9 Mil. Quantum's Revenue for the
three
months ended in Jun. 2023 was $91.8 Mil. Therefore, Quantum's Gross Margin % for the quarter that ended in Jun. 2023 was 38.06%.
Warning Sign:
Quantum Corp gross margin has been in long-term decline. The average rate of decline per year is -3.2%.
The historical rank and industry rank for Quantum's Gross Margin % or its related term are showing as below:
QMCO'
s Gross Margin % Range Over the Past 10 Years
Min: 32.45 Med: 42.15 Max: 44.3
Current: 33.09
During the past 13 years, the highestGross Margin % of Quantum was 44.30%. The lowest was 32.45%. And the median was 42.15%.
QMCO's Gross Margin % is ranked better than 67.04% of 2439
companies
in the Hardware industry
Industry Median: 24.5
vs QMCO: 33.09
Quantum had a gross margin of 38.06% for the quarter that ended in Jun. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Quantum was -3.20% per year.
Quantum Gross Margin % Historical Data
The historical data trend for Quantum'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 Computer Hardware subindustry, Quantum'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.
Quantum Gross Margin % Distribution
For the Hardware industry and Technology sector, Quantum's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Quantum'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.
Quantum (NAS:QMCO) 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
Quantum had a gross margin of 38.06% 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.
Quantum Gross Margin % Related Terms
Thank you for viewing the detailed overview of Quantum's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Quantum Corp is a United States-based company engaged in providing scale-out storage, archive, and data protection for small businesses and large multinational enterprises. Its solutions capture, share, manage and preserve digital assets throughout the data lifecycle. The scale-out portfolio offerings enable customers to manage large unstructured data sets, provide ingest capabilities, real-time collaboration, scalability, and protection. It derives primary revenues from the products based on tape technology. A majority of the firm's revenue is generated in the Americas, with the rest coming from Europe and Asia-Pacific.
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