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Universal Technical Institute (Universal Technical Institute) Gross Margin % : 47.10% (As of Dec. 2023)


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What is Universal Technical Institute Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Universal Technical Institute's Gross Profit for the three months ended in Dec. 2023 was $82.3 Mil. Universal Technical Institute's Revenue for the three months ended in Dec. 2023 was $174.7 Mil. Therefore, Universal Technical Institute's Gross Margin % for the quarter that ended in Dec. 2023 was 47.10%.


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

UTI' s Gross Margin % Range Over the Past 10 Years
Min: 42.39   Med: 46.3   Max: 50.51
Current: 45.5


During the past 13 years, the highest Gross Margin % of Universal Technical Institute was 50.51%. The lowest was 42.39%. And the median was 46.30%.

UTI's Gross Margin % is ranked worse than
56.05% of 248 companies
in the Education industry
Industry Median: 48.255 vs UTI: 45.50

Universal Technical Institute had a gross margin of 47.10% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Universal Technical Institute was 2.00% per year.


Universal Technical Institute Gross Margin % Historical Data

The historical data trend for Universal Technical Institute'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.

Universal Technical Institute Gross Margin % Chart

Universal Technical Institute Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.21 48.15 50.22 50.51 45.69

Universal Technical Institute 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 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 48.83 46.94 42.35 45.30 47.10

Competitive Comparison of Universal Technical Institute's Gross Margin %

For the Education & Training Services subindustry, Universal Technical Institute'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.


Universal Technical Institute's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Universal Technical Institute's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Universal Technical Institute's Gross Margin % falls into.



Universal Technical Institute Gross Margin % Calculation

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

Universal Technical Institute's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=277.5 / 607.408
=(Revenue - Cost of Goods Sold) / Revenue
=(607.408 - 329.87) / 607.408
=45.69 %

Universal Technical Institute'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 )
=82.3 / 174.695
=(Revenue - Cost of Goods Sold) / Revenue
=(174.695 - 92.409) / 174.695
=47.10 %

* 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.


Universal Technical Institute  (NYSE:UTI) 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

Universal Technical Institute had a gross margin of 47.10% for the quarter that ended in Dec. 2023 => 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.


Universal Technical Institute Gross Margin % Related Terms

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


Universal Technical Institute (Universal Technical Institute) Business Description

Traded in Other Exchanges
Address
4225 East Windrose Drive, Suite 200, Phoenix, AZ, USA, 85032
Universal Technical Institute Inc is an educational institution. It provides undergraduate degree, as well as certificate programs for technicians in the automotive, diesel, collision repair, motorcycle and marine fields. The company's reportable segment includes Universal Technical Institute (UTI) and Concorde Career Colleges. Majority of the revenue is generated from UTI segment which provides different kinds of degree and non-degree transportation and skilled trades technical training programs under brands such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute and others. It also provides dealer technician training or instructor staffing services to manufacturers.
Executives
Troy R Anderson officer: EVP and CFO 16220 N SCOTTSDALE RD, SUITE 500, SCOTTSDALE AZ 85254
Loretta Lydia Sanchez director 4225 E. WINDROSE DRIVE, SUITE 200, PHOENIX AZ 85032
Coliseum Capital Management, Llc 10 percent owner 105 ROWAYTON AVENUE, ROWAYTON CT 06853
Tracy Kay Lorenz officer: UTI Division President 4225 E. WINDROSE DRIVE, SUITE 200, PHOENIX AZ 85032
Michael A. Slubowski director 4225 E. WINDROSE DRIVE, SUITE 200, PHOENIX AZ 85032
Jami J. Frazier officer: Division President 4225 E. WINDROSE DRIVE, SUITE 200, PHOENIX AZ 85032
Jerome Alan Grant officer: EVP & Chief Operating Officer 16220 N. SCOTTSDALE RD., SUITE 100, SCOTTSDALE AZ 85254
Shannon Lei Okinaka director C/O HAWAIIAN HOLDINGS, INC., 3375 KOAPAKA STREET, SUITE G-350, HONOLULU HI 96819
Kimberly J Mcwaters director, officer: CEO and President 20410 NORTH 19TH AVENUE, PHOENIX AZ 85027
Bart Fesperman officer: Chief Commercial Officer 4225 EAST WINDROSE DRIVE, SUITE 200, PHOENIX AZ 85032
Sonia Claire Mason officer: Chief Human Resources Officer 4225 EAST WINDROSE DRIVE, SUITE 200, PHOENIX AZ 85032
George W. Brochick director 2555 TELEGRAPH RD, BLOOMFIELD HILLS MI 48302
Christopher E. Kevane officer: SVP Chief Legal Officer 9221 E. VIA DE VENTURA, SCOTTSDALE AZ 85258
Robert Thomas Devincenzi director 825 E MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Lori B Smith officer: SVP Chief Information Officer 16220 N SCOTTSDALE RD, SUITE 500, SCOTTSDALE AZ 85254