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Keysight Technologies (Keysight Technologies) Gross Margin % : 64.58% (As of Jan. 2024)


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What is Keysight Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Keysight Technologies's Gross Profit for the three months ended in Jan. 2024 was $813 Mil. Keysight Technologies's Revenue for the three months ended in Jan. 2024 was $1,259 Mil. Therefore, Keysight Technologies's Gross Margin % for the quarter that ended in Jan. 2024 was 64.58%.


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

KEYS' s Gross Margin % Range Over the Past 10 Years
Min: 53.21   Med: 57.27   Max: 64.81
Current: 64.81


During the past 13 years, the highest Gross Margin % of Keysight Technologies was 64.81%. The lowest was 53.21%. And the median was 57.27%.

KEYS's Gross Margin % is ranked better than
95.78% of 2439 companies
in the Hardware industry
Industry Median: 24.34 vs KEYS: 64.81

Keysight Technologies had a gross margin of 64.58% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Keysight Technologies was 3.30% per year.


Keysight Technologies Gross Margin % Historical Data

The historical data trend for Keysight Technologies'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.

Keysight Technologies Gross Margin % Chart

Keysight Technologies Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 58.89 60.01 62.11 63.65 64.64

Keysight Technologies Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 Premium Member Only Premium Member Only 63.94 65.40 64.83 64.38 64.58

Competitive Comparison of Keysight Technologies's Gross Margin %

For the Scientific & Technical Instruments subindustry, Keysight Technologies'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.


Keysight Technologies's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Keysight Technologies's Gross Margin % distribution charts can be found below:

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



Keysight Technologies Gross Margin % Calculation

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

Keysight Technologies's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )=Gross Profit (A: Oct. 2023 ) / Revenue (A: Oct. 2023 )
=3532 / 5464
=(Revenue - Cost of Goods Sold) / Revenue
=(5464 - 1932) / 5464
=64.64 %

Keysight Technologies's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=813 / 1259
=(Revenue - Cost of Goods Sold) / Revenue
=(1259 - 446) / 1259
=64.58 %

* 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.


Keysight Technologies  (NYSE:KEYS) 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

Keysight Technologies had a gross margin of 64.58% for the quarter that ended in Jan. 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.


Keysight Technologies Gross Margin % Related Terms

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


Keysight Technologies (Keysight Technologies) Business Description

Traded in Other Exchanges
Address
1400 Fountaingrove Parkway, Santa Rosa, CA, USA, 95403-1738
Keysight Technologies is a leader in the field of testing and measurement, helping electronics OEMs and suppliers alike bring products to market to fit industry standards and specifications. Keysight specializes in the communications market, but also supplies into the government, automotive, industrial, and semiconductor manufacturing markets. Keysight's solutions include testing tools, analytical software, and services. The firm's stated objective is to reduce time to market and improve efficiency at its more than 30,000 customers.
Executives
Ronald S. Nersesian director, officer: CEO 5301 STEVENS CREEK BLVD., MS 1A-LC, SANTA CLARA CA 95051
Kailash Narayanan officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Neil Dougherty officer: SVP & CFO 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Huei Sin Ee officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
John Page officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Jeffrey K Li officer: SVP and Secretary 1400 FOUNTAINGROVE PKWY, SANTA ROSA CA 95403
Soon Chai Gooi officer: SVP 5301 STEVENS CREEK BLVD., SANTA CLARA CA 95051
James Cullen director 5301 STEVENS CREEK BLVD, MS 1A-LC, SANTA CLARA CA 95051
Satish Dhanasekaran officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Lisa M. Poole officer: VP and Controller 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
Richard P Hamada director 2211 S 47TH ST, PHOENIX AZ 85034
Kevin A Stephens director 1220 AUGUSTA DRIVE, SUITE 600, HOUSTON TX 77057
Charles J Dockendorff director COVIDIEN LTD., 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Ingrid A Estrada officer: SVP 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403
John C. Skinner officer: VP & Controller 1400 FOUNTAINGROVE PARKWAY, SANTA ROSA CA 95403