Gross margin trend (GM trend 5Y)
The average annual change in gross margin, in percentage points, across the last five filed years.
The direction of the margin usually tells you about competition before the revenue line does.
How it is computed here
(Latest gross margin - oldest gross margin) / number of years, in percentage points
Computed across several filed fiscal years. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- A straight line between two endpoints. It cannot see a collapse and recovery in between.
- Sensitive to which years happen to be on file.
Questions
How is gross margin trend calculated?
(Latest gross margin - oldest gross margin) / number of years, in percentage points. Computed across several filed fiscal years.
What does gross margin trend tell a value investor?
The direction of the margin usually tells you about competition before the revenue line does.
When does gross margin trend mislead?
A straight line between two endpoints. It cannot see a collapse and recovery in between. Sensitive to which years happen to be on file.