Gross Margin % is calculated as gross profit divided by its revenue. Key Tronic's Gross Profit for the
three
months ended in Dec. 2023 was $11.8 Mil. Key Tronic's Revenue for the
three
months ended in Dec. 2023 was $145.4 Mil. Therefore, Key Tronic's Gross Margin % for the quarter that ended in Dec. 2023 was 8.09%.
The historical rank and industry rank for Key Tronic's Gross Margin % or its related term are showing as below:
KTCC'
s Gross Margin % Range Over the Past 10 Years
Min: 7.46 Med: 8.04 Max: 8.79
Current: 7.48
During the past 13 years, the highestGross Margin % of Key Tronic was 8.79%. The lowest was 7.46%. And the median was 8.04%.
KTCC's Gross Margin % is ranked worse than 88.93% of 2439
companies
in the Hardware industry
Industry Median: 24.34
vs KTCC: 7.48
Key Tronic had a gross margin of 8.09% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Key Tronic was 1.60% per year.
Key Tronic Gross Margin % Historical Data
The historical data trend for Key Tronic'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 Key Tronic's Gross Margin %
For the Computer Hardware subindustry, Key Tronic'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.
Key Tronic's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Key Tronic's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Key Tronic'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.
Key Tronic (NAS:KTCC) 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
Key Tronic had a gross margin of 8.09% for the quarter that ended in Dec. 2023 => No sustainable 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.
Key Tronic Gross Margin % Related Terms
Thank you for viewing the detailed overview of Key Tronic's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Key Tronic Corp is an electronic manufacturing service provider. The company provides electronic manufacturing services to original equipment manufacturers in the United States and globally. Its primary services include integrated electronic and mechanical engineering, precision plastic molding, sheet metal fabrication, printed circuit board (PCB) and complete product assembly, component selection, sourcing and procurement, logistics, and new product testing and production. The firm derives a majority of its revenue from the United States.
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