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Gross Margin % is calculated as gross profit divided by its revenue. SMART Global Holdings's Gross Profit for the three months ended in Nov. 2023 was $83 Mil. SMART Global Holdings's Revenue for the three months ended in Nov. 2023 was $274 Mil. Therefore, SMART Global Holdings's Gross Margin % for the quarter that ended in Nov. 2023 was 30.21%.
The historical rank and industry rank for SMART Global Holdings's Gross Margin % or its related term are showing as below:
During the past 9 years, the highest Gross Margin % of SMART Global Holdings was 30.37%. The lowest was 19.28%. And the median was 21.31%.
SMART Global Holdings had a gross margin of 30.21% for the quarter that ended in Nov. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for SMART Global Holdings was 7.20% per year.
The historical data trend for SMART Global 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.
SMART Global Holdings Annual Data | |||||||||||||||||||
Trend | Aug15 | Aug16 | Aug17 | Aug18 | Aug19 | Aug20 | Aug21 | Aug22 | Aug23 | ||||||||||
Gross Margin % | Get a 7-Day Free Trial | 19.60 | 19.28 | 22.55 | 28.01 | 28.81 |
SMART Global Holdings Quarterly Data | ||||||||||||||||||||
Feb19 | May19 | Aug19 | Nov19 | Feb20 | May20 | Aug20 | Nov20 | Feb21 | May21 | Aug21 | Nov21 | Feb22 | May22 | Aug22 | Nov22 | Feb23 | May23 | Aug23 | Nov23 | |
Gross Margin % | Get a 7-Day Free Trial | 28.61 | 25.72 | 25.73 | 53.74 | 30.21 |
For the Semiconductors subindustry, SMART Global 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.
For the Semiconductors industry and Technology sector, SMART Global Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SMART Global Holdings's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
SMART Global Holdings's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as
Gross Margin % (A: Aug. 2023 ) | = | Gross Profit (A: Aug. 2023 ) | / | Revenue (A: Aug. 2023 ) |
= | 415.2 | / | 1441.25 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (1441.25 - 1026.079) | / | 1441.25 | |
= | 28.81 % |
SMART Global Holdings's Gross Margin for the quarter that ended in Nov. 2023 is calculated as
Gross Margin % (Q: Nov. 2023 ) | = | Gross Profit (Q: Nov. 2023 ) | / | Revenue (Q: Nov. 2023 ) |
= | 82.9 | / | 274.247 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (274.247 - 191.397) | / | 274.247 | |
= | 30.21 % |
* 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.
SMART Global Holdings (NAS:SGH) 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
SMART Global Holdings had a gross margin of 30.21% for the quarter that ended in Nov. 2023 => 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.
Thank you for viewing the detailed overview of SMART Global Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Jack A Pacheco | officer: EVP, COO, Pres, Mem Solutions | SMART MODULAR TECHNOLOGIES (WWH), INC., 4211 STARBOARD DRIVE, FREMONT CA 94538 |
Joseph Gates Clark | officer: President, LED Solutions | C/O SMART MODULAR TECHNOLOGIES, INC., 39870 EUREKA DRIVE, NEWARK CA 94560 |
Ken Rizvi | officer: SVP and CFO | 39870 EUREKA DRIVE, NEWARK CA 94560-4809 |
David C Laurello | officer: President - IPS | C/O SMART GLOBAL HOLDINGS, INC., 39870 EUREKA DRIVE, NEWARK CA 94560 |
Mark Adams | director, officer: President and CEO | 834 TERRACE DRIVE, LOS ALTOS CA 94024 |
Anne Kuykendall | officer: SVP and Chief Legal Officer | C/O SMART MODULAR TECHNOLOGIES, INC., 39870 EUREKA DRIVE, NEWARK CA 94560 |
Sandeep Nayyar | director | C/O SMART GLOBAL HOLDINGS, INC., 39870 EUREKA DRIVE, NEWARK CA 94560 |
Mary G Puma | director | AXCELIS TECHNOLOGIES INC., 108 CHERRY HILL DRIVE, BEVERLY MA 01915 |
Thierry Pellegrino | officer: SVP, Pres. Spec. Computing | C/O SMART MODULAR TECHNOLOGIES, INC., 39870 EUREKA DRIVE, NEWARK CA 94560 |
Penny Herscher | director | 1001 RIDDER PARK DRIVE, SAN JOSE CA 95131 |
Mark D Papermaster | director | ONE AMD PLACE, SUNNYVALE CA 94088 |
Claude Demby | officer: SVP, Pres. Cree LED | C/O SMART MODULAR TECHNOLOGIES, INC., 39870 EUREKA DRIVE, NEWARK CA 94560 |
Ajay Shah | director | 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
Mukesh Patel | director | C/O SMART GLOBAL HOLDINGS, INC., 39870 EUREKA DRIVE, NEWARK CA 94560 |
Silver Lake (offshore) Aiv Gp Iii, Ltd. | 10 percent owner | C/O SILVER LAKE PARTNERS, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025 |
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