Park-Ohio Holdings Corp gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Park-Ohio Holdings's Gross Margin % or its related term are showing as below:
PKOH'
s Gross Margin % Range Over the Past 10 Years
Min: 13.93 Med: 16.08 Max: 17.01
Current: 16.67
During the past 13 years, the highestGross Margin % of Park-Ohio Holdings was 17.01%. The lowest was 13.93%. And the median was 16.08%.
PKOH's Gross Margin % is ranked worse than 77.48% of 2935
companies
in the Industrial Products industry
Industry Median: 26.35
vs PKOH: 16.67
Park-Ohio Holdings had a gross margin of 17.10% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Park-Ohio Holdings was -1.20% per year.
Park-Ohio Holdings Gross Margin % Historical Data
The historical data trend for Park-Ohio Holdings'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 Park-Ohio Holdings's Gross Margin %
For the Specialty Industrial Machinery subindustry, Park-Ohio Holdings'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.
Park-Ohio Holdings's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Park-Ohio Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Park-Ohio Holdings'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.
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
Park-Ohio Holdings had a gross margin of 17.10% for the quarter that ended in Mar. 2024 => 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.
Park-Ohio Holdings Gross Margin % Related Terms
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Park-Ohio Holdings (Park-Ohio Holdings) Business Description
Park-Ohio Holdings Corp is a company, engaged in industrial supply chain logistics and diversified manufacturing business. It operates in three business segments namely Supply Technologies, Assembly Components and Engineered Products. Geographically, the business of the group is amplifying across the region of the United States, Asia, Europe, Canada, Mexico and others. The company derives most of the revenue from the Supply Technologies segment which provides the customer with total supply management services such as engineering and design support, supplier selection, quality assurance, barcoding, product packaging and tracking, just-in-time and point-of-use delivery and electronic billing services for a range of production components.
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