Ichor Holdings (Ichor Holdings) Gross Margin % : 10.00% (As of Dec. 2023)

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What is Ichor Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ichor Holdings's Gross Profit for the three months ended in Dec. 2023 was $20.3 Mil. Ichor Holdings's Revenue for the three months ended in Dec. 2023 was $203.5 Mil. Therefore, Ichor Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 10.00%.

Warning Sign:

Ichor Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.7%.

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

ICHR' s Gross Margin % Range Over the Past 10 Years
Min: 12.75 Med: 15.74 Max: 16.71
Current: 12.75

During the past 10 years, the highest Gross Margin % of Ichor Holdings was 16.71%. The lowest was 12.75%. And the median was 15.74%.

ICHR's Gross Margin % is ranked worse than
81.58% of 972 companies
in the Semiconductors industry
Industry Median: 28.06 vs ICHR: 12.75

Ichor Holdings had a gross margin of 10.00% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ichor Holdings was -1.70% per year.

Ichor Holdings Gross Margin % Historical Data

The historical data trend for Ichor Holdings'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.

Ichor Holdings Gross Margin % Chart

Ichor Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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13.91

13.66

16.18

16.55

12.75

Ichor Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															16.21	14.72	13.91	12.23	10.00

Competitive Comparison of Ichor Holdings's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, Ichor Holdings'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.

Ichor Holdings's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Ichor Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ichor Holdings's Gross Margin % falls into.

Ichor Holdings Gross Margin % Calculation

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

Ichor Holdings'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 )
	=	103.4	/	811.12
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(811.12 - 707.724)	/	811.12
	=	12.75 %

Ichor Holdings'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 )
	=	20.3	/	203.481
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(203.481 - 183.136)	/	203.481
	=	10.00 %

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.

Ichor Holdings (NAS:ICHR) 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

Ichor Holdings had a gross margin of 10.00% for the quarter that ended in Dec. 2023 => No sustainable 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.

Ichor Holdings Gross Margin % Related Terms

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Ichor Holdings (Ichor Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Ichor Holdings Ltd (NAS:ICHR) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

4IH:Germany

Address

3185 Laurelview Court, Fremont, CA, USA, 94538

Website

https://www.ichorsystems.com

Ichor Holdings Ltd is engaged in the design, engineering, and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment. The product offerings include gas and chemical delivery subsystems, collectively known as fluid delivery subsystems, which are key elements of the process tools used in the manufacturing of semiconductor devices. The company also manufactures machined components, weldments, and proprietary products for use in fluid delivery systems. Geographically, the company operates in the United States of America, Singapore, Europe, and other countries, of which a majority of the revenue is generated from the United States of America.

Executives

Barros Philip Ryan Sr.	officer: Chief Technology Officer	3185 LAUREL VIEW CT., FREMONT CA 94538
Thomas M Rohrs	director, officer: Chief Executive Officer	2 RESULTS WAY, CUPERTINO CA 95014
Greg Swyt	officer: Chief Financial Officer	C/O ONTO INNOVATION INC., 16 JONSPIN ROAD, WILMINGTON MA 01887
Christopher Smith	officer: Chief Commercial Officer	3560 BASSETT STREET, SANTA CLARA CA 95054
Marc Haugen	director	C/O CEPHEID, 904 CARIBBEAN DRIVE, SUNNYVALE CA 94089
Bruce Ragsdale	officer: Chief Operating Officer	3185 LAURELVIEW CT, FREMONT CA 94538
Jorge Titinger	director	7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Iain Mackenzie	director	C/O SMART GLOBAL HOLDINGS, INC., 39870 EUREKA DRIVE, NEWARK CA 94560
Paul Chhabra	officer: Chief Operating Officer	9255 COVERDALE ROAD, FORT WAYNE IN 46809
Kevin M. Canty	officer: Chief Operating Officer	3185 LAURELVIEW CT., FREMONT CA 94538
Yuval Wasserman	director	1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
Sarah A O'dowd	director	3185 LAURELVIEW COURT, FREMONT CA 94538
Wendy Arienzo	director	5245 HELLYER AVE, SAN JOSE CA 95138
Larry J Sparks	officer: Chief Financial Officer	3185 LAURELVIEW CT, FREMONT CA 94538
Laura A. Black	director	3000 SAND HILL ROAD, BLDG. 1, SUITE 240, MENLO PARK CA 94025