Gross Margin % is calculated as gross profit divided by its revenue. NET Power's Gross Profit for the
three
months ended in Jun. 2024 was $0.21 Mil. NET Power's Revenue for the
three
months ended in Jun. 2024 was $0.24 Mil. Therefore, NET Power's Gross Margin % for the quarter that ended in Jun. 2024 was 87.39%.
The historical rank and industry rank for NET Power's Gross Margin % or its related term are showing as below:
NPWR'
s Gross Margin % Range Over the Past 10 Years
Min: 52.59 Med: 52.59 Max: 87.4
Current: 87.4
During the past 3 years, the highestGross Margin % of NET Power was 87.40%. The lowest was 52.59%. And the median was 52.59%.
NPWR's Gross Margin % is ranked better than 99.49% of 2935
companies
in the Industrial Products industry
Industry Median: 26.71
vs NPWR: 87.40
NET Power had a gross margin of 87.39% for the quarter that ended in Jun. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NET Power was 0.00% per year.
NET Power Gross Margin % Historical Data
The historical data trend for NET Power'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 NET Power's Gross Margin %
For the Specialty Industrial Machinery subindustry, NET Power'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.
NET Power's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, NET Power's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NET Power'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.
NET Power (NYSE:NPWR) 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
NET Power had a gross margin of 87.39% 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.
NET Power Gross Margin % Related Terms
Thank you for viewing the detailed overview of NET Power's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
NET Power Inc is a clean energy technology company that has developed a novel power generation system which it refers to as the "NET Power Cycle is designed to produce clean, reliable and low-cost electricity from natural gas while capturing virtually all atmospheric emissions.
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