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Orbital ATK Gross Margin %

: 22.10% (As of Mar. 2018)
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Gross Margin % is calculated as gross profit divided by its revenue. Orbital ATK's Gross Profit for the three months ended in Mar. 2018 was $290 Mil. Orbital ATK's Revenue for the three months ended in Mar. 2018 was $1,312 Mil. Therefore, Orbital ATK's Gross Margin % for the quarter that ended in Mar. 2018 was 22.10%.




Orbital ATK had a gross margin of 22.10% for the quarter that ended in Mar. 2018 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Orbital ATK was 0.00% per year.


Orbital ATK Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

* Premium members only.

Orbital ATK Annual Data
Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Dec16 Dec17
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.36 10.04 22.52 22.11 22.36

Orbital ATK Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 22.03 23.95 22.62 21.81 22.10

Competitive Comparison
* 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.


Orbital ATK Gross Margin % Distribution

* The bar in red indicates where Orbital ATK's Gross Margin % falls into.



Orbital ATK Gross Margin % Calculation

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

Orbital ATK's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=1065 / 4764
=(Revenue - Cost of Goods Sold) / Revenue
=(4764 - 3699) / 4764
=22.36 %

Orbital ATK's Gross Margin for the quarter that ended in Mar. 2018 is calculated as


Gross Margin % (Q: Mar. 2018 )=Gross Profit (Q: Mar. 2018 ) / Revenue (Q: Mar. 2018 )
=290 / 1312
=(Revenue - Cost of Goods Sold) / Revenue
=(1312 - 1022) / 1312
=22.10 %

* All numbers are in millions except for per share data and ratio. All numbers 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.


Orbital ATK  (NYSE:OA) 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

Orbital ATK had a gross margin of 22.10% for the quarter that ended in Mar. 2018 => 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.


Orbital ATK Gross Margin % Related Terms


Orbital ATK Gross Margin % Headlines

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