Gross Margin % is calculated as gross profit divided by its revenue. Itron's Gross Profit for the
three
months ended in Dec. 2023 was $196 Mil. Itron's Revenue for the
three
months ended in Dec. 2023 was $577 Mil. Therefore, Itron's Gross Margin % for the quarter that ended in Dec. 2023 was 34.03%.
The historical rank and industry rank for Itron's Gross Margin % or its related term are showing as below:
ITRI'
s Gross Margin % Range Over the Past 10 Years
Min: 27.71 Med: 30.4 Max: 33.53
Current: 32.84
During the past 13 years, the highestGross Margin % of Itron was 33.53%. The lowest was 27.71%. And the median was 30.40%.
ITRI's Gross Margin % is ranked better than 66.75% of 2439
companies
in the Hardware industry
Industry Median: 24.5
vs ITRI: 32.84
Itron had a gross margin of 34.03% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Itron was 0.80% per year.
Itron Gross Margin % Historical Data
The historical data trend for Itron'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.
For the Scientific & Technical Instruments subindustry, Itron'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.
Itron Gross Margin % Distribution
For the Hardware industry and Technology sector, Itron's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Itron'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.
Itron (NAS:ITRI) 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
Itron had a gross margin of 34.03% for the quarter that ended in Dec. 2023 => 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.
Itron Gross Margin % Related Terms
Thank you for viewing the detailed overview of Itron's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Itron Inc provides solutions that measure, manage and analyze energy and water use. It operates under the Itron brand and manages and reports under three operating segments: Device Solutions, Networked Solutions, and Outcomes. The device Solutions segment includes hardware products used for measurement, control, or sense that do not have communications capability embedded for use with broader Itron systems.The networked Solutions segment includes a combination of communicating devices, network infrastructure, and associated application software designed and sold as a complete solution. The outcome segment includes their value-added, enhanced software and services which manage, organize, analyze, and interpret data to improve decision making, maximize operational profitability.
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