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Synaptics Inc (NAS:SYNA)
Gross Profit
$622 Mil (TTM As of Sep. 2015)

Synaptics Inc's gross profit for the three months ended in Sep. 2015 was $164 Mil. Synaptics Inc's gross profit for the trailing twelve months (TTM) ended in Sep. 2015 was $622 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Synaptics Inc's gross profit for the three months ended in Sep. 2015 was $164 Mil. Synaptics Inc's revenue for the three months ended in Sep. 2015 was $470 Mil. Therefore, Synaptics Inc's Gross Margin for the quarter that ended in Sep. 2015 was 34.85%.

Synaptics Inc had a gross margin of 34.85% for the quarter that ended in Sep. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Synaptics Inc was 49.10%. The lowest was 33.98%. And the median was 40.98%.

Warning Sign:

Synaptics Inc gross margin has been in long term decline. The average rate of decline per year is -1.4%.


Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Synaptics Inc's Gross Profit for the fiscal year that ended in Jun. 2015 is calculated as

Gross Profit (A: Jun. 2015 )=Revenue - Cost of Goods Sold
=1703 - 1124.3
=579

Synaptics Inc's Gross Profit for the quarter that ended in Sep. 2015 is calculated as

Gross Profit (Q: Sep. 2015 )=Revenue - Cost of Goods Sold
=470 - 306.2
=164

Synaptics Inc Gross Profit for the trailing twelve months (TTM) ended in Sep. 2015 was 126.8 (Dec. 2014 ) + 164.345 (Mar. 2015 ) + 167.335 (Jun. 2015 ) + 163.8 (Sep. 2015 ) = $622 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Synaptics Inc's Gross Margin for the quarter that ended in Sep. 2015 is calculated as

Gross Margin (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=164 / 470
=34.85 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.


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

Synaptics Inc had a gross margin of 34.85% for the quarter that ended in Sep. 2015 => Competition eroding margins


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Synaptics Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
Gross_Profit 83106147192209246256326436579

Synaptics Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Gross_Profit 1099592140120127164167164165
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