The historical rank and industry rank for Parker Hannifin's Gross Margin % or its related term are showing as below:
PH'
s Gross Margin % Range Over the Past 10 Years
Min: 22.33 Med: 24.89 Max: 35.42
Current: 35.42
During the past 13 years, the highestGross Margin % of Parker Hannifin was 35.42%. The lowest was 22.33%. And the median was 24.89%.
PH's Gross Margin % is ranked better than 72.8% of 2937
companies
in the Industrial Products industry
Industry Median: 26.42
vs PH: 35.42
Parker Hannifin had a gross margin of 35.66% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Parker Hannifin was 7.80% per year.
Parker Hannifin Gross Margin % Historical Data
The historical data trend for Parker Hannifin'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 Parker Hannifin's Gross Margin %
For the Specialty Industrial Machinery subindustry, Parker Hannifin'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.
Parker Hannifin's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Parker Hannifin's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Parker Hannifin'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
Parker Hannifin had a gross margin of 35.66% 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.
Parker Hannifin Gross Margin % Related Terms
Thank you for viewing the detailed overview of Parker Hannifin's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Parker Hannifin (Parker Hannifin) Business Description
Parker Hannifin is an industrial conglomerate operating through two segments: diversified industrial, which serves a variety of end markets, and aerospace systems, which sells engine and actuation components. The diversified industrial segment consists of six groups, including engineered materials (sealing devices), filtration (filters and systems monitoring and removing contaminants from liquids and gases), fluid connectors (valves, couplings, and other fittings), instrumentation (flow manufacturing components and fluid control applications), and motion systems (hydraulic, pneumatic, and electromechanical components in industrial machinery and equipment). The segment boasts 17,100 independent distributors, and about 40% of its business occurs outside the United States.
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