Check Point Software Technologies (Check Point Software Technologies) Gross Margin %

: 87.72% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Check Point Software Technologies's Gross Profit for the three months ended in Dec. 2023 was $582 Mil. Check Point Software Technologies's Revenue for the three months ended in Dec. 2023 was $664 Mil. Therefore, Check Point Software Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 87.72%.

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

CHKP' s Gross Margin % Range Over the Past 10 Years
Min: 86.94 Med: 88.4 Max: 89.49
Current: 88.3

During the past 13 years, the highest Gross Margin % of Check Point Software Technologies was 89.49%. The lowest was 86.94%. And the median was 88.40%.

CHKP's Gross Margin % is ranked better than
92.85% of 2628 companies
in the Software industry
Industry Median: 41.685 vs CHKP: 88.30

Check Point Software Technologies had a gross margin of 87.72% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Check Point Software Technologies was -0.40% per year.

Check Point Software Technologies Gross Margin % Historical Data

The historical data trend for Check Point Software 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.

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Check Point Software Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

89.20

89.03

88.09

86.94

88.30

Check Point Software Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																86.88	87.97	88.81	88.75	87.72

Competitive Comparison

For the Software - Infrastructure subindustry, Check Point Software 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.

Check Point Software Technologies Gross Margin % Distribution

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

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

Check Point Software Technologies Gross Margin % Calculation

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

Check Point Software Technologies'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 )
	=	2132.1	/	2414.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2414.7 - 282.6)	/	2414.7
	=	88.30 %

Check Point Software Technologies's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	582	/	663.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(663.5 - 81.5)	/	663.5
	=	87.72 %

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.

Check Point Software Technologies (NAS:CHKP) 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

Check Point Software Technologies had a gross margin of 87.72% for the quarter that ended in Dec. 2023 => 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.

Check Point Software Technologies Gross Margin % Related Terms

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Check Point Software Technologies (Check Point Software Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Check Point Software Technologies Ltd (NAS:CHKP) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

CHKPN:Mexico CPW:Germany

Address

5 Shlomo Kaplan Street, Tel Aviv, ISR, 6789159

Website

https://www.checkpoint.com

Check Point Software Technologies is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud, and mobile security in addition to security management. Check Point, a software specialist, sells to enterprises, businesses, and consumers. Around 50% of revenue is generated in Europe, the Middle East, and Africa, 40% from the Americas, and 10% from the Asia-Pacific region. The firm, based in Tel Aviv, Israel, was founded in 1993 and has about 5,000 employees.