Gross Margin % is calculated as gross profit divided by its revenue. Huntington Ingalls Industries's Gross Profit for the
three
months ended in Dec. 2023 was $491 Mil. Huntington Ingalls Industries's Revenue for the
three
months ended in Dec. 2023 was $3,177 Mil. Therefore, Huntington Ingalls Industries's Gross Margin % for the quarter that ended in Dec. 2023 was 15.45%.
Warning Sign:
Huntington Ingalls Industries Inc gross margin has been in long-term decline. The average rate of decline per year is -8.4%.
The historical rank and industry rank for Huntington Ingalls Industries's Gross Margin % or its related term are showing as below:
HII'
s Gross Margin % Range Over the Past 10 Years
Min: 13.49 Med: 19.11 Max: 22.96
Current: 14.37
During the past 13 years, the highestGross Margin % of Huntington Ingalls Industries was 22.96%. The lowest was 13.49%. And the median was 19.11%.
HII's Gross Margin % is ranked worse than 76.35% of 296
companies
in the Aerospace & Defense industry
Industry Median: 26.385
vs HII: 14.37
Huntington Ingalls Industries had a gross margin of 15.45% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Huntington Ingalls Industries was -8.40% per year.
Huntington Ingalls Industries Gross Margin % Historical Data
The historical data trend for Huntington Ingalls 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.
* Premium members only.
Huntington Ingalls Industries Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
17.20
17.84
14.36
13.49
14.37
Huntington Ingalls Industries Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
12.06
13.09
13.96
14.77
15.45
Competitive Comparison
For the Aerospace & Defense subindustry, Huntington Ingalls 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.
Huntington Ingalls Industries Gross Margin % Distribution
For the Aerospace & Defense industry and Industrials sector, Huntington Ingalls Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Huntington Ingalls 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
Huntington Ingalls Industries had a gross margin of 15.45% 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.
Huntington Ingalls Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of Huntington Ingalls Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Huntington Ingalls Industries (Huntington Ingalls Industries) Business Description
Huntington Ingalls Industries is the largest independent military shipbuilder in the U.S., spun off of Northrop Grumman in 2011. It operates three segments, two of which are historied shipyards: Ingalls produces non-nuclear-powered ships including amphibious landing ships and Arleigh Burke-class destroyers while Newport News produces nuclear-powered ships as the only producer of Gerald Ford-class aircraft carriers and a major subcontractor on Virginia and Columbia-class nuclear submarines. Huntington Ingalls shares production of destroyers and nuclear submarines with General Dynamics' Bath Iron Works and Electric Boat shipyards, respectively. The company's Mission Technologies segment produces uncrewed sea vessels and provides a range of IT and other services to U.S. government agencies.
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