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Avaya Holdings (Avaya Holdings) Gross Margin % : 44.89% (As of Jun. 2022)


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What is Avaya Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Avaya Holdings's Gross Profit for the three months ended in Jun. 2022 was $259 Mil. Avaya Holdings's Revenue for the three months ended in Jun. 2022 was $577 Mil. Therefore, Avaya Holdings's Gross Margin % for the quarter that ended in Jun. 2022 was 44.89%.


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


AVYAQ's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.71
* Ranked among companies with meaningful Gross Margin % only.

Avaya Holdings had a gross margin of 44.89% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Avaya Holdings was 0.00% per year.


Avaya Holdings Gross Margin % Historical Data

The historical data trend for Avaya 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.

Avaya Holdings Gross Margin % Chart

Avaya Holdings Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 61.37 54.55 54.55 54.99 55.50

Avaya Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 55.60 54.61 51.75 51.82 44.89

Competitive Comparison of Avaya Holdings's Gross Margin %

For the Software - Application subindustry, Avaya 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.


Avaya Holdings's Gross Margin % Distribution in the Software Industry

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

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



Avaya Holdings Gross Margin % Calculation

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

Avaya Holdings's Gross Margin for the fiscal year that ended in Sep. 2021 is calculated as

Gross Margin % (A: Sep. 2021 )=Gross Profit (A: Sep. 2021 ) / Revenue (A: Sep. 2021 )
=1650 / 2973
=(Revenue - Cost of Goods Sold) / Revenue
=(2973 - 1323) / 2973
=55.50 %

Avaya Holdings's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=259 / 577
=(Revenue - Cost of Goods Sold) / Revenue
=(577 - 318) / 577
=44.89 %

* 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.


Avaya Holdings  (OTCPK:AVYAQ) 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

Avaya Holdings had a gross margin of 44.89% for the quarter that ended in Jun. 2022 => 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.


Avaya Holdings Gross Margin % Related Terms

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


Avaya Holdings (Avaya Holdings) Business Description

Traded in Other Exchanges
N/A
Address
2605 Meridian Parkway, Suite 200, Durham, NC, USA, 27713
Avaya Holdings Corp provides digital communications products, solutions, and services for businesses. The company has two operating segments namely Products and Solutions, and Services. Products and Solutions offer Unified Communications and Contact Center platforms, applications and devices. It helps to offer an open, extensible development platform so that customers and third parties can easily create custom applications and automated workflows for their unique needs. Whereas Services consists of three business areas: Global Support Services, Enterprise Cloud and Managed Services and Professional Services. The company generates maximum revenue from the Services segment. Geographically, it derives a majority of revenue from the U.S.
Executives
Carrie W. Teffner director 200 DOMAIN DRIVE, STRATHAM NH 03885
King Theodore Walker Cheng-de 10 percent owner UNIT 1502, 15TH FLOOR, 99 HENNESSY ROAD, WANCHAI K3 999077
Jill Kathleen Frizzley director P.O. BOX 1541, ONE BLUE HILL PLAZA, PEARL RIVER NY 10965
Anna-marie Crowley officer: GVP, Human Resources C/O AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Vito Carnevale officer: SVP, General Counsel C/O AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Rebecca A Roof officer: Interim CFO C/O LORDSTOWN MOTORS CORP., 2300 HALLOCK YOUNG ROAD, LORDSTOWN OH 44481
Alan Masarek director, officer: President and CEO C/O VONAGE HOLDINGS CORP., 23 MAIN STREET, HOLMDEL NJ 07733
Stephen Spears officer: EVP and Chief Revenue Officer C/O AVAYA, 2605 MERIDIAN PKWY, SUITE 200, DURHAM NC 27713
James M Chirico director, officer: President & CEO 2605 MERIDIAN PARKWAY, DURHAM NC 27713
Kevin Speed officer: VP, Controller & CAO AVAYA, 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Kieran J Mcgrath officer: SVP & CFO 350 MT. KEMBLE AVENUE, MORRISTOWN NJ 07960
Shefali A Shah officer: SVP, CAO and General Counsel C/O AVAYA, ONE PENN PLAZA, 16TH FLOOR, NEW YORK NY 10119
Susan Louise Spradley director C/O NORTEL NETWORKS, 8200 DIXIE ROAD STE 100, BRAMPTON ONTARIO A6 L6T 5PT
Robert I Theis director
Anthony Bartolo officer: EVP, Chief Product Officer C/O BANDWIDTH INC., 900 MAIN CAMPUS DRIVE, RALEIGH NC 27606

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