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iPower (iPower) Gross Margin % : 43.56% (As of Dec. 2023)


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What is iPower Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. iPower's Gross Profit for the three months ended in Dec. 2023 was $7.32 Mil. iPower's Revenue for the three months ended in Dec. 2023 was $16.80 Mil. Therefore, iPower's Gross Margin % for the quarter that ended in Dec. 2023 was 43.56%.


The historical rank and industry rank for iPower's Gross Margin % or its related term are showing as below:

IPW' s Gross Margin % Range Over the Past 10 Years
Min: 34.48   Med: 39.14   Max: 42.2
Current: 41.32


During the past 5 years, the highest Gross Margin % of iPower was 42.20%. The lowest was 34.48%. And the median was 39.14%.

IPW's Gross Margin % is ranked better than
58.72% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.46 vs IPW: 41.32

iPower had a gross margin of 43.56% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for iPower was 0.00% per year.


iPower Gross Margin % Historical Data

The historical data trend for iPower'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.

* Premium members only.

iPower Gross Margin % Chart

iPower Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
34.48 37.88 42.20 41.80 39.14

iPower Quarterly Data
Jun19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 41.39 38.52 38.68 44.36 43.56

Competitive Comparison of iPower's Gross Margin %

For the Internet Retail subindustry, iPower'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.


iPower's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, iPower's Gross Margin % distribution charts can be found below:

* The bar in red indicates where iPower's Gross Margin % falls into.



iPower Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

iPower's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=34.8 / 88.902
=(Revenue - Cost of Goods Sold) / Revenue
=(88.902 - 54.105) / 88.902
=39.14 %

iPower's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=7.3 / 16.8
=(Revenue - Cost of Goods Sold) / Revenue
=(16.8 - 9.482) / 16.8
=43.56 %

* 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.


iPower  (NAS:IPW) 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

iPower had a gross margin of 43.56% for the quarter that ended in Dec. 2023 => 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.


iPower Gross Margin % Related Terms

Thank you for viewing the detailed overview of iPower's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


iPower (iPower) Business Description

Traded in Other Exchanges
N/A
Address
8798 9th Street, Rancho Cucamonga, CA, USA, 91730
iPower Inc is online hydroponic equipment and accessory retailer and supplier in North America. The company sells products through own website as well as online channel partners that include Amazon, Walmart, and eBay.
Executives
Kevin Vassily director, officer: Chief Financial Officer C/O IPOWER INC., 2399 BATEMAN AVENUE, DUARTE CA 91010
Chenlong Tan director, 10 percent owner, officer: Chief Executive Officer 2399 BATEMAN AVE., IRWINDALE CA 91010
Hanxi Li director C/O IPOWER, INC., 2399 BATEMAN AVENUE, DUARTE CA 91010
Danilo Cacciamatta director
Tchaikovsky Bennet Price Jr director 11601 WILSHIRE BOULEVARD, SUITE 2150, LOS ANGELES CA 90025
Kevin Liles director C/O IPOWER INC., 2399 BATEMAN AVENUE, DUARTE CA 91010