Gross Margin % is calculated as gross profit divided by its revenue. Arteris's Gross Profit for the
three
months ended in Mar. 2024 was $11.48 Mil. Arteris's Revenue for the
three
months ended in Mar. 2024 was $12.95 Mil. Therefore, Arteris's Gross Margin % for the quarter that ended in Mar. 2024 was 88.66%.
The historical rank and industry rank for Arteris's Gross Margin % or its related term are showing as below:
AIP'
s Gross Margin % Range Over the Past 10 Years
Min: 89.86 Med: 91.5 Max: 95.31
Current: 89.86
During the past 5 years, the highestGross Margin % of Arteris was 95.31%. The lowest was 89.86%. And the median was 91.50%.
AIP's Gross Margin % is ranked better than 98.46% of 975
companies
in the Semiconductors industry
Industry Median: 28.43
vs AIP: 89.86
Arteris had a gross margin of 88.66% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Arteris was 0.00% per year.
Arteris Gross Margin % Historical Data
The historical data trend for Arteris'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.
Competitive Comparison of Arteris's Gross Margin %
For the Semiconductors subindustry, Arteris'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.
Arteris's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Arteris's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arteris's Gross Margin % falls into.
* 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.
Arteris (NAS:AIP) 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
Arteris had a gross margin of 88.66% for the quarter that ended in Mar. 2024 => 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.
Arteris Gross Margin % Related Terms
Thank you for viewing the detailed overview of Arteris's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Arteris Inc is a developer of on-chip interconnect fabric technology designed for a variety of devices and in the development and distribution of Network-on-Chip (NoC) interconnect intellectual property (IP). The company's technology is used in System-on-Chip (SoC) and provides software and services to automate SoC integration, enabling users to efficiently deploy NoC IP, and offer IP support, maintenance services, professional services, and training and on-site support services.
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