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Thermon Group Holdings Gross Margin %

: 44.14% (As of Sep. 2019)
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Gross Margin % is calculated as gross profit divided by its revenue. Thermon Group Holdings's Gross Profit for the three months ended in Sep. 2019 was $45.4 Mil. Thermon Group Holdings's Revenue for the three months ended in Sep. 2019 was $102.9 Mil. Therefore, Thermon Group Holdings's Gross Margin % for the quarter that ended in Sep. 2019 was 44.14%.

Warning Sign:

Thermon Group Holdings Inc gross margin has been in long term decline. The average rate of decline per year is -2.8%.


NYSE:THR' s Gross Margin % Range Over the Past 10 Years
Min: 41.67   Max: 50.13
Current: 41.67

41.67
50.13

During the past 10 years, the highest Gross Margin % of Thermon Group Holdings was 50.13%. The lowest was 41.67%. And the median was 47.08%.

NYSE:THR's Gross Margin % is ranked higher than
83% of the 2387 Companies
in the Industrial Products industry.

( Industry Median: 26.45 vs. NYSE:THR: 41.67 )

Thermon Group Holdings had a gross margin of 44.14% for the quarter that ended in Sep. 2019 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Thermon Group Holdings was -2.80% per year.


Thermon Group Holdings Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Thermon Group Holdings Annual Data
Mar09 Mar10 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 50.13 46.58 42.38 46.60 42.64

Thermon Group Holdings Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 44.77 42.63 39.37 40.50 44.14

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.


Thermon Group Holdings Gross Margin % Distribution

* The bar in red indicates where Thermon Group Holdings's Gross Margin % falls into.



Thermon Group Holdings Gross Margin % Calculation

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

Thermon Group Holdings's Gross Margin for the fiscal year that ended in Mar. 2019 is calculated as

Gross Margin % (A: Mar. 2019 )=Gross Profit (A: Mar. 2019 ) / Revenue (A: Mar. 2019 )
=175.9 / 412.642
=(Revenue - Cost of Goods Sold) / Revenue
=(412.642 - 236.702) / 412.642
=42.64 %

Thermon Group Holdings's Gross Margin for the quarter that ended in Sep. 2019 is calculated as


Gross Margin % (Q: Sep. 2019 )=Gross Profit (Q: Sep. 2019 ) / Revenue (Q: Sep. 2019 )
=-57.5 / 102.935
=(Revenue - Cost of Goods Sold) / Revenue
=(102.935 - 57.503) / 102.935
=44.14 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Thermon Group Holdings  (NYSE:THR) 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

Thermon Group Holdings had a gross margin of 44.14% for the quarter that ended in Sep. 2019 => Durable 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.


Thermon Group Holdings Gross Margin % Related Terms


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