The historical rank and industry rank for Rocket Lab USA's Gross Margin % or its related term are showing as below:
RKLB'
s Gross Margin % Range Over the Past 10 Years
Min: -33.61 Med: 2.98 Max: 24.51
Current: 24.51
During the past 4 years, the highestGross Margin % of Rocket Lab USA was 24.51%. The lowest was -33.61%. And the median was 2.98%.
RKLB's Gross Margin % is ranked worse than 53.38% of 296
companies
in the Aerospace & Defense industry
Industry Median: 26.025
vs RKLB: 24.51
Rocket Lab USA had a gross margin of 26.06% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Rocket Lab USA was 0.00% per year.
Rocket Lab USA Gross Margin % Historical Data
The historical data trend for Rocket Lab USA'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 Rocket Lab USA's Gross Margin %
For the Aerospace & Defense subindustry, Rocket Lab USA'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.
Rocket Lab USA's Gross Margin % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rocket Lab USA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Rocket Lab USA'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.
Rocket Lab USA (NAS:RKLB) 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
Rocket Lab USA had a gross margin of 26.06% for the quarter that ended in Mar. 2024 => Competition eroding margins
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.
Rocket Lab USA Gross Margin % Related Terms
Thank you for viewing the detailed overview of Rocket Lab USA's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Rocket Lab USA (Rocket Lab USA) Business Description
Rocket Lab USA Inc is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defence, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered more than 100 satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments being Launch Services and Space systems. Geographically it serves Japan, Germany, rest of the world and earns key revenue from the United States.
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