Gross Margin % is calculated as gross profit divided by its revenue. ClearOne's Gross Profit for the
three
months ended in Mar. 2024 was $1.15 Mil. ClearOne's Revenue for the
three
months ended in Mar. 2024 was $3.62 Mil. Therefore, ClearOne's Gross Margin % for the quarter that ended in Mar. 2024 was 31.78%.
Warning Sign:
ClearOne Inc gross margin has been in long-term decline. The average rate of decline per year is -6.2%.
The historical rank and industry rank for ClearOne's Gross Margin % or its related term are showing as below:
CLRO'
s Gross Margin % Range Over the Past 10 Years
Min: 33.99 Med: 46.1 Max: 63.53
Current: 34.13
During the past 13 years, the highestGross Margin % of ClearOne was 63.53%. The lowest was 33.99%. And the median was 46.10%.
CLRO's Gross Margin % is ranked better than 68.83% of 2438
companies
in the Hardware industry
Industry Median: 24.405
vs CLRO: 34.13
ClearOne had a gross margin of 31.78% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for ClearOne was -6.20% per year.
ClearOne Gross Margin % Historical Data
The historical data trend for ClearOne'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 ClearOne's Gross Margin %
For the Communication Equipment subindustry, ClearOne'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.
ClearOne's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, ClearOne's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ClearOne'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.
ClearOne (NAS:CLRO) 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
ClearOne had a gross margin of 31.78% 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.
ClearOne Gross Margin % Related Terms
Thank you for viewing the detailed overview of ClearOne's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ClearOne Inc is a communications solutions company, which is engaged in designing, developing, and selling conferencing, collaboration, streaming, and digital signage solutions for audio, video, and visual communication. It sells its commercial products to end-users primarily through a network of independent distributors, who in turn sells its products to dealers, systems integrators, and other resellers. Its products include professional audio, network media streaming, and professional microphones. Geographically the firm has its business presence across the US and international market.
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