RCM Technologies (RCM Technologies) Gross Margin % : 30.45% (As of Dec. 2023)

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What is RCM Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. RCM Technologies's Gross Profit for the three months ended in Dec. 2023 was $21.6 Mil. RCM Technologies's Revenue for the three months ended in Dec. 2023 was $71.0 Mil. Therefore, RCM Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 30.45%.

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

RCMT' s Gross Margin % Range Over the Past 10 Years
Min: 24.61 Med: 26.36 Max: 29.14
Current: 29.14

During the past 13 years, the highest Gross Margin % of RCM Technologies was 29.14%. The lowest was 24.61%. And the median was 26.36%.

RCMT's Gross Margin % is ranked better than
59.17% of 480 companies
in the Conglomerates industry
Industry Median: 25.03 vs RCMT: 29.14

RCM Technologies had a gross margin of 30.45% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for RCM Technologies was 3.70% per year.

RCM Technologies Gross Margin % Historical Data

The historical data trend for RCM Technologies'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.

RCM Technologies Gross Margin % Chart

RCM Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

25.43

25.83

26.06

29.13

29.14

RCM Technologies 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															29.15	28.34	27.99	29.77	30.45

Competitive Comparison of RCM Technologies's Gross Margin %

For the Conglomerates subindustry, RCM Technologies'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.

RCM Technologies's Gross Margin % Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, RCM Technologies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where RCM Technologies's Gross Margin % falls into.

RCM Technologies Gross Margin % Calculation

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

RCM Technologies'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 )
	=	76.7	/	263.237
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(263.237 - 186.541)	/	263.237
	=	29.14 %

RCM Technologies'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 )
	=	21.6	/	71.028
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(71.028 - 49.397)	/	71.028
	=	30.45 %

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.

RCM Technologies (NAS:RCMT) 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

RCM Technologies had a gross margin of 30.45% for the quarter that ended in Dec. 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.

RCM Technologies Gross Margin % Related Terms

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

RCM Technologies (RCM Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » RCM Technologies Inc (NAS:RCMT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2500 McClellan Avenue, Suite 350, Pennsauken, NJ, USA, 08109-4613

Website

https://www.rcmt.com

RCM Technologies Inc is a provider of business and technology solutions designed to enhance and maximize the operational performance of its customers. It operates in three segments: Engineering, which provides a comprehensive portfolio of engineering and design services across three verticals: Energy Services, Process & Industrial, and Aerospace; Information Technology; and Specialty Health Care Services, engaged in providing the staffing of health care professionals, primarily health information management professionals, nurses, paraprofessionals, physicians, and therapists. The company generates maximum revenue from the Specialty Health Care segment. Geographically, it derives a majority of revenue from the United States and also has a presence in Canada, Puerto Rico, and Serbia.

Executives

Kevin D Miller	officer: Chief Financial Officer	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Bradley Vizi	10 percent owner	10390 WILSHIRE BLVD, SUITE 406, LOS ANGELES CA 90024
Michael Saks	other: Sr. Vice President	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Chigozie Obinna Amadi	director	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Roger H Ballou	10 percent owner, other: See Explanation	C/O CDI CORP, 1717 ARCH ST 35TH FL, PHILADELPHIA PA 19103
Richard A. Genovese	director	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Jayanth Sree Komarneni	director	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Swarna Srinivas Kakodkar	director	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Michael Edward Boyle	officer: Division President, IT Srvs.	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Harvest Financial Corporation	other: See Explanation	1055 LPL WAY, 223 FOURTH AVENUE, FORT MILL SC 29715
Petraglia Frank William Jr	officer: Sr. Vice President	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Irs Partnership No. 19, L.p.	10 percent owner	515 S. FIGUEROA STREET, SUITE 1050, LOS ANGELES CA 90071
Danny A. White	officer: Sr. Vice President	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Maier O Fein	director	2500 MCCLELLAN AVENUE, SUITE 350, PENNSAUKEN NJ 08109
Michael O'connell	10 percent owner	515 S. FIGUEROA STREET, SUITE 1050, LOS ANGELES CA 90071