IPG Photonics's gross profit for the
three
months ended in Dec. 2023 was $114 Mil. IPG Photonics's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $542 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. IPG Photonics's gross profit for the
three
months ended in Dec. 2023 was $114 Mil. IPG Photonics's Revenue for the
three
months ended in Dec. 2023 was $299 Mil. Therefore, IPG Photonics's Gross Margin % for the quarter that ended in Dec. 2023 was 38.20%.
IPG Photonics had a gross margin of 38.20% for the quarter that ended in Dec. 2023 => Competition eroding margins
During the past 13 years, the highestGross Margin % of IPG Photonics was 56.56%. The lowest was 38.85%. And the median was 50.89%.
Warning Sign:
IPG Photonics Corp gross margin has been in long-term decline. The average rate of decline per year is -5%.
IPG Photonics Gross Profit Historical Data
The historical data trend for IPG Photonics's Gross Profit 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 IPG Photonics's Gross Profit
For the Semiconductor Equipment & Materials subindustry, IPG Photonics's Gross Profit, along with its competitors' market caps and Gross Profit 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.
IPG Photonics's Gross Profit Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, IPG Photonics's Gross Profit distribution charts can be found below:
* The bar in red indicates where IPG Photonics's Gross Profit falls into.
IPG Photonics Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
IPG Photonics's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $542 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
IPG Photonics (NAS:IPGP) Gross Profit 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
IPG Photonics had a gross margin of 38.20% for the quarter that ended in Dec. 2023 => Competition eroding margins
IPG Photonics Gross Profit Related Terms
Thank you for viewing the detailed overview of IPG Photonics's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
IPG Photonics (IPG Photonics) Business Description
IPG Photonics Corp is a vertically integrated developer and manufacturer of high-performance fiber lasers, fiber amplifiers, and diode lasers, which are used in diverse applications in the manufacturing, automotive, industrial, aerospace, semiconductor, and consumer end markets. A large majority of the firm's revenue is derived from materials processing applications for fiber lasers, including cutting and welding, marking and engraving, and micro-processing. Roughly a third of the firm's revenue is generated in China, with the rest coming from North America, Europe, Japan, Australia, and other countries across the world.
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