The historical rank and industry rank for Emerson Electric Co's Gross Margin % or its related term are showing as below:
EMR'
s Gross Margin % Range Over the Past 10 Years
Min: 41.76 Med: 43.13 Max: 50.26
Current: 50.26
During the past 13 years, the highestGross Margin % of Emerson Electric Co was 50.26%. The lowest was 41.76%. And the median was 43.13%.
EMR's Gross Margin % is ranked better than 91.35% of 2938
companies
in the Industrial Products industry
Industry Median: 26.74
vs EMR: 50.26
Emerson Electric Co had a gross margin of 52.83% for the quarter that ended in Jun. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Emerson Electric Co was 2.80% per year.
Emerson Electric Co Gross Margin % Historical Data
The historical data trend for Emerson Electric Co'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 Emerson Electric Co's Gross Margin %
For the Specialty Industrial Machinery subindustry, Emerson Electric Co'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.
Emerson Electric Co's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co'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.
Emerson Electric Co (NYSE:EMR) 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
Emerson Electric Co had a gross margin of 52.83% for the quarter that ended in Jun. 2024 => Durable 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.
Emerson Electric Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Emerson Electric Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Emerson Electric sells automation equipment and services under two segments: intelligent devices and software control. Within software and control, it also holds a majority interest in AspenTech, an industrial software business, and owns a test and measurement business that was formerly National Instruments. Intelligent devices also holds Emerson's tools business, which boasts several household brands, like Ridgid. Emerson's automation business is most known for its process manufacturing solutions, which consists of measurement and analytical instrumentation, as well as control valves and actuators, among other products and services. Nearly half of the firm's geographic sales come from the Americas.
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