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Science Applications International (Science Applications International) Gross Margin % : 11.05% (As of Jan. 2024)


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What is Science Applications International Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Science Applications International's Gross Profit for the three months ended in Jan. 2024 was $192 Mil. Science Applications International's Revenue for the three months ended in Jan. 2024 was $1,737 Mil. Therefore, Science Applications International's Gross Margin % for the quarter that ended in Jan. 2024 was 11.05%.


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

SAIC' s Gross Margin % Range Over the Past 10 Years
Min: 8.62   Med: 10.52   Max: 11.71
Current: 11.71


During the past 13 years, the highest Gross Margin % of Science Applications International was 11.71%. The lowest was 8.62%. And the median was 10.52%.

SAIC's Gross Margin % is ranked worse than
90.89% of 2624 companies
in the Software industry
Industry Median: 41.67 vs SAIC: 11.71

Science Applications International had a gross margin of 11.05% for the quarter that ended in Jan. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Science Applications International was 2.80% per year.


Science Applications International Gross Margin % Historical Data

The historical data trend for Science Applications International'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.

Science Applications International Gross Margin % Chart

Science Applications International Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.07 11.22 11.62 11.53 11.71

Science Applications International 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 11.28 11.59 12.11 12.08 11.05

Competitive Comparison of Science Applications International's Gross Margin %

For the Information Technology Services subindustry, Science Applications International'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.


Science Applications International's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Science Applications International's Gross Margin % falls into.



Science Applications International Gross Margin % Calculation

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

Science Applications International's Gross Margin for the fiscal year that ended in Jan. 2024 is calculated as

Gross Margin % (A: Jan. 2024 )=Gross Profit (A: Jan. 2024 ) / Revenue (A: Jan. 2024 )
=872 / 7444
=(Revenue - Cost of Goods Sold) / Revenue
=(7444 - 6572) / 7444
=11.71 %

Science Applications International'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 )
=192 / 1737
=(Revenue - Cost of Goods Sold) / Revenue
=(1737 - 1545) / 1737
=11.05 %

* 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.


Science Applications International  (NAS:SAIC) 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

Science Applications International had a gross margin of 11.05% for the quarter that ended in Jan. 2024 => 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.


Science Applications International Gross Margin % Related Terms

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


Science Applications International (Science Applications International) Business Description

Traded in Other Exchanges
Address
12010 Sunset Hills Road, Reston, VA, USA, 20190
Science Applications International Corp provides technical, engineering and enterprise IT services primarily to the U.S. government. Specifically, the company offers engineering, systems integration and information technology for large government projects and a broad range of services with an emphasis on higher-end technology services. The company's end-to-end enterprise IT offerings span the entire spectrum of customers' IT infrastructure.
Executives
Michelle A. O'hara officer: EVP, CHRO 12010 SUNSET HILLS ROAD, RESTON VA 20190
Donna S Morea director 214 N TRYON STREET, CHARLOTTE NC 28202
Robert S. Genter officer: EVP, CGM, Civilian Markets 12010 SUNSET HILLS ROAD, RESTON VA 20190
Toni Townes-whitley director, officer: Chief Executive Officer 8340 SPRINGHAVEN GARDEN LANE, MCLEAN, VA X1 22102
Dana S Deasy director
Michael W. Larouche officer: EVP, CGM, National Security 12010 SUNSET HILLS ROAD, RESTON VA 20190
Katharina G. Mcfarland director 4803 STONECROFT BOULEVARD, CHANTILLY VA 20151
Nazzic S Keene officer: COO, Sector President 1710 SAIC DRIVE, MCLEAN VA 22102
James Reagan director C/O DELTEK, 13880 DULLES CORNER LANE, HERNDON VA 20171
Carolyn B Handlon director 1555 PEACHTREE ST. NE, SUITE 1800, ATLANTA GA 30309
Hilary Hageman officer: EVP General Counsel, Secretary 9333 BALBOA AVENUE, SAN DIEGO CA 92123
Timothy J Mayopoulos director C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Steven G Mahon officer: EVP General Counsel, Secretary C/O MTS SYSTEMS CORPORATION, 14000 TECHNOLOGY DRIVE, EDEN PRAIRIE MN 55344
Prabu Natarajan officer: EVP, Chief Financial Officer 12010 SUNSET HILLS ROAD, RESTON VA 20190
Milford W Mcguirt director 3400 CUMBERLAND BOULEVARD, ATLANTA GA 30339