Advantech Co (TPE:2395) Gross Margin % : 39.97% (As of Mar. 2024)

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What is Advantech Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Advantech Co's Gross Profit for the three months ended in Mar. 2024 was NT$5,548 Mil. Advantech Co's Revenue for the three months ended in Mar. 2024 was NT$13,879 Mil. Therefore, Advantech Co's Gross Margin % for the quarter that ended in Mar. 2024 was 39.97%.

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

TPE:2395' s Gross Margin % Range Over the Past 10 Years
Min: 37.75 Med: 39.54 Max: 40.75
Current: 40.62

During the past 13 years, the highest Gross Margin % of Advantech Co was 40.75%. The lowest was 37.75%. And the median was 39.54%.

TPE:2395's Gross Margin % is ranked better than
78.47% of 2439 companies
in the Hardware industry
Industry Median: 24.37 vs TPE:2395: 40.62

Advantech Co had a gross margin of 39.97% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Advantech Co was 0.40% per year.

Advantech Co Gross Margin % Historical Data

The historical data trend for Advantech Co'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.

Advantech Co Gross Margin % Chart

Advantech Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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38.97

39.90

37.75

37.99

40.52

Advantech Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															39.73	41.19	40.09	41.09	39.97

Competitive Comparison of Advantech Co's Gross Margin %

For the Computer Hardware subindustry, Advantech Co'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.

Advantech Co's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Advantech Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Advantech Co's Gross Margin % falls into.

Advantech Co Gross Margin % Calculation

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

Advantech Co'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 )
	=	26161.8	/	64567.697
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(64567.697 - 38405.883)	/	64567.697
	=	40.52 %

Advantech Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	5547.7	/	13879.27
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(13879.27 - 8331.592)	/	13879.27
	=	39.97 %

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.

Advantech Co (TPE:2395) 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

Advantech Co had a gross margin of 39.97% for the quarter that ended in Mar. 2024 => 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.

Advantech Co Gross Margin % Related Terms

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Advantech Co (TPE:2395) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Advantech Co Ltd (TPE:2395) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 1, Alley 20, Lane 26, Rueiguang Road, Neihu District, Taipei, TWN, 114519

Website

https://www.advantech.com

Founded in 1981, Advantech is the world's largest industrial PC, or IPC, supplier, offering single-board computers, fanless IPCs, digital posts and more. The company reports three segments: embedded PCs, industry PC and automation solutions, and service and others. They contributed 50%, 39% and 11% revenue in 2022, respectively. Leveraging its presence in 27 countries, Advantech is expanding into Internet of Things verticals like smart retail, medical, transportation, industrial automation and energy by investing in Internet of Things solution partners and its proprietary WISE-PaaS platform. The headquarters is in Taipei, Taiwan. The company maintains most manufacturing facilities in Taiwan and Kunshan, China; and has 14 service centers globally.

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