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Avalue Technology (ROCO:3479) Gross Margin % : 26.22% (As of Mar. 2024)


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What is Avalue Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Avalue Technology's Gross Profit for the three months ended in Mar. 2024 was NT$409 Mil. Avalue Technology's Revenue for the three months ended in Mar. 2024 was NT$1,560 Mil. Therefore, Avalue Technology's Gross Margin % for the quarter that ended in Mar. 2024 was 26.22%.


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

ROCO:3479' s Gross Margin % Range Over the Past 10 Years
Min: 23.51   Med: 25.25   Max: 28.43
Current: 26.19


During the past 13 years, the highest Gross Margin % of Avalue Technology was 28.43%. The lowest was 23.51%. And the median was 25.25%.

ROCO:3479's Gross Margin % is ranked better than
53.38% of 2439 companies
in the Hardware industry
Industry Median: 24.38 vs ROCO:3479: 26.19

Avalue Technology had a gross margin of 26.22% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Avalue Technology was -0.50% per year.


Avalue Technology Gross Margin % Historical Data

The historical data trend for Avalue Technology'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.

Avalue Technology Gross Margin % Chart

Avalue Technology Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.43 25.06 23.51 23.90 26.54

Avalue Technology Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 27.60 25.48 26.63 26.40 26.22

Competitive Comparison of Avalue Technology's Gross Margin %

For the Computer Hardware subindustry, Avalue Technology'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.


Avalue Technology's Gross Margin % Distribution in the Hardware Industry

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

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



Avalue Technology Gross Margin % Calculation

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

Avalue Technology's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=2185.7 / 8234.667
=(Revenue - Cost of Goods Sold) / Revenue
=(8234.667 - 6048.923) / 8234.667
=26.54 %

Avalue Technology's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=409 / 1559.591
=(Revenue - Cost of Goods Sold) / Revenue
=(1559.591 - 1150.593) / 1559.591
=26.22 %

* 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.


Avalue Technology  (ROCO:3479) 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

Avalue Technology had a gross margin of 26.22% for the quarter that ended in Mar. 2024 => Competition eroding margins


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.


Avalue Technology Gross Margin % Related Terms

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Avalue Technology (ROCO:3479) Business Description

Traded in Other Exchanges
N/A
Address
No. 228 Liancheng Road, Zhonghe District, 7th Floor, New Taipei City, TWN, 235
Avalue Technology Inc designs and manufactures PC-based industrial computer products. Its products include an embedded platform, industrial motherboard, applied panel computing, RISC platform and ODM service, industrial motherboard, intelligent system, and among others.

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