What does gross margin mean?

How much of every sales dollar is left after the direct cost of what was sold.

How do you interpret gross margin?

Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.

How does gross margin compare across companies?

Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.

Huntington Ingalls Industries HII Gross margin

Discontinued — last reported Q2 '18

Gross margin at other companies

L3Harris TechnologiesLHX

25.5%-0.6pp

Lockheed MartinLMT

9.8%-0.3pp

BWX TechnologiesBWXT

22.7%-1.5pp

Leonardo DRS, Inc.DRS

24.4%+1.5pp

Curtiss-WrightCW

37.2%+0.1pp

Crane Co.CR

41.6%+0.3pp

Other financials

Income statement

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Revenue$3.1B+13.4%

Operating income$155.0M-3.7%

Net income$149.0M0.0%

EPS (diluted)$3.790.0%

Balance sheet

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Cash & equivalents$216.0M+29.3%

Total debt$2.9B+1.0%

Total assets$12.5B+3.6%

Cash flow

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Operating cash flow-$390.0M+1.3%

CapEx$74.0M+10.4%

Free cash flow-$464.0M-0.4%

Valuation

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Market cap$11.25B+86.9%

Enterprise value$13.96B+64.5%

P/E18.6×+7.6×

P/S0.9×+0.4×

Profitability

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Operating margin5.1%+0.3pp

Net margin4.7%-0.1pp

FCF margin6.2%+5.2pp

Returns & leverage

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Current ratio1.2×+0.1×

Where this comes from

Calculated from Huntington Ingalls Industries’s reported figures.

gross profit/total revenue=42.2%

Based on trailing twelve months.

The official record: Huntington Ingalls Industries’s 10-Q, filed August 1, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does gross margin mean?: How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?: Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?: Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.