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Cavitation Technologies (Cavitation Technologies) Gross Margin % : 82.29% (As of Dec. 2023)


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What is Cavitation Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cavitation Technologies's Gross Profit for the three months ended in Dec. 2023 was $0.16 Mil. Cavitation Technologies's Revenue for the three months ended in Dec. 2023 was $0.19 Mil. Therefore, Cavitation Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 82.29%.

Warning Sign:

Cavitation Technologies Inc gross margin has been in long-term decline. The average rate of decline per year is -2.9%.


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

CVAT' s Gross Margin % Range Over the Past 10 Years
Min: 69.51   Med: 93.6   Max: 97.59
Current: 69.51


During the past 13 years, the highest Gross Margin % of Cavitation Technologies was 97.59%. The lowest was 69.51%. And the median was 93.60%.

CVAT's Gross Margin % is ranked better than
98.2% of 2938 companies
in the Industrial Products industry
Industry Median: 26.39 vs CVAT: 69.51

Cavitation Technologies had a gross margin of 82.29% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cavitation Technologies was -2.90% per year.


Cavitation Technologies Gross Margin % Historical Data

The historical data trend for Cavitation 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.

Cavitation Technologies Gross Margin % Chart

Cavitation Technologies Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 93.67 97.59 96.42 97.54 72.06

Cavitation 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 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 77.59 81.97 7.69 - 82.29

Competitive Comparison of Cavitation Technologies's Gross Margin %

For the Specialty Industrial Machinery subindustry, Cavitation 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.


Cavitation Technologies's Gross Margin % Distribution in the Industrial Products Industry

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

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



Cavitation Technologies Gross Margin % Calculation

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

Cavitation Technologies's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=0.3 / 0.433
=(Revenue - Cost of Goods Sold) / Revenue
=(0.433 - 0.121) / 0.433
=72.06 %

Cavitation 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 )
=0.2 / 0.192
=(Revenue - Cost of Goods Sold) / Revenue
=(0.192 - 0.034) / 0.192
=82.29 %

* 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.


Cavitation Technologies  (OTCPK:CVAT) 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

Cavitation Technologies had a gross margin of 82.29% 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.


Cavitation Technologies Gross Margin % Related Terms

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


Cavitation Technologies (Cavitation Technologies) Business Description

Traded in Other Exchanges
N/A
Address
10019 Canoga Avenue, Chatsworth, CA, USA, 91311
Cavitation Technologies Inc develops, patents, and commercializes the proprietary technology for large-scale liquid processing applications. The firm has commercialized its proprietary technology for refining vegetable oils by providing domestic and foreign refining facilities with a firm's Nano Neutralization technology and cavitation systems comprising the Nano Reactor. Its technologies can be applied to several other fluid-processing industries that will benefit from increased yields, lowered processing costs, and improved quality. It has filed patent applications related to edible oil refining, renewable fuel production, both alcoholic and non-alcoholic beverage processing and enhancement, and petroleum upgrading. Its component comprises of Nano Reactor and LPN.
Executives
Naum Voloshin officer: Chief Financial Officer 10019 CANOGA AVENUE, CHATSWORTH CA 91311
Roman Gordon director, 10 percent owner, officer: CEO, Secretary 10019 CANOGA AVENUE, CHATSWORTH CA 91311
Todd Zelek director, officer: CEO 730 SOUTH SAN RAFAEL AVENUE, PASADENA CA 91105
James W Fuller director C/O BAYTREE CAPITAL ASSOCIATES LLC, 40 WALL STREET, 58TH FLOOR, NEW YORK NY 10005
Igor Gorodnitsky director, 10 percent owner, officer: President 10019 CANOGA AVENUE, CHATSWORTH CA 91311
R L Hartshorn director, 10 percent owner, officer: CFO 10019 CANOGA AVENUE, CHATSWORTH CA 91311
Jose Antonio Castro director, 10 percent owner, officer: CEO & CFO 3702 SOUTH VIRGINIA STREET, #G12-401, RENO NV 89502
Zhang Haiming director, 10 percent owner, officer: Chief Technology Officer 3702 SOUTH VIRGINIA STREET, #G12-401, RENO NV 89502

Cavitation Technologies (Cavitation Technologies) Headlines

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