Gross Margin % is calculated as gross profit divided by its revenue. Gentherm's Gross Profit for the
three
months ended in Dec. 2023 was $96 Mil. Gentherm's Revenue for the
three
months ended in Dec. 2023 was $367 Mil. Therefore, Gentherm's Gross Margin % for the quarter that ended in Dec. 2023 was 26.24%.
Warning Sign:
Gentherm Inc gross margin has been in long-term decline. The average rate of decline per year is -5%.
The historical rank and industry rank for Gentherm's Gross Margin % or its related term are showing as below:
THRM'
s Gross Margin % Range Over the Past 10 Years
Min: 22.72 Med: 29.52 Max: 32.27
Current: 23.94
During the past 13 years, the highestGross Margin % of Gentherm was 32.27%. The lowest was 22.72%. And the median was 29.52%.
THRM's Gross Margin % is ranked better than 64.72% of 1267
companies
in the Vehicles & Parts industry
Industry Median: 19.36
vs THRM: 23.94
Gentherm had a gross margin of 26.24% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Gentherm was -5.00% per year.
Gentherm Gross Margin % Historical Data
The historical data trend for Gentherm'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.
Competitive Comparison of Gentherm's Gross Margin %
For the Auto Parts subindustry, Gentherm'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.
Gentherm's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Gentherm's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gentherm'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.
Gentherm (NAS:THRM) 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
Gentherm had a gross margin of 26.24% 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.
Gentherm Gross Margin % Related Terms
Thank you for viewing the detailed overview of Gentherm's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gentherm Inc is an automotive parts manufacturer. The business activities of the group function through the Automotive and Medical segments. The vast majority of the firm's revenue comes from the Automotive segment, which includes automotive climate comfort systems, automotive cable systems, battery performance solutions, and automotive electronics and software systems. The medical segment is comprised of the results from the patient temperature management business in the medical industry. Its geographical segments are the United States, China, South Korea, Germany, Japan, the Czech Republic, and other countries.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
THRM has been successfully added to your 