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Grand Process Technology (ROCO:3131) Gross Margin % : 43.23% (As of Mar. 2024)


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What is Grand Process Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Grand Process Technology's Gross Profit for the three months ended in Mar. 2024 was NT$388 Mil. Grand Process Technology's Revenue for the three months ended in Mar. 2024 was NT$898 Mil. Therefore, Grand Process Technology's Gross Margin % for the quarter that ended in Mar. 2024 was 43.23%.

Warning Sign:

Grand Process Technology Corp gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


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

ROCO:3131' s Gross Margin % Range Over the Past 10 Years
Min: 41.98   Med: 45.4   Max: 47.47
Current: 42.36


During the past 13 years, the highest Gross Margin % of Grand Process Technology was 47.47%. The lowest was 41.98%. And the median was 45.40%.

ROCO:3131's Gross Margin % is ranked better than
73.87% of 972 companies
in the Semiconductors industry
Industry Median: 28.725 vs ROCO:3131: 42.36

Grand Process Technology had a gross margin of 43.23% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Grand Process Technology was -1.80% per year.


Grand Process Technology Gross Margin % Historical Data

The historical data trend for Grand Process Technology'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.

Grand Process Technology Gross Margin % Chart

Grand Process Technology Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.02 45.28 42.74 43.45 41.98

Grand Process Technology 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 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 41.68 39.14 38.85 47.09 43.23

Competitive Comparison of Grand Process Technology's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, Grand Process Technology'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.


Grand Process Technology's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Grand Process Technology's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Grand Process Technology's Gross Margin % falls into.



Grand Process Technology Gross Margin % Calculation

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

Grand Process Technology'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 )
=1487.9 / 3543.994
=(Revenue - Cost of Goods Sold) / Revenue
=(3543.994 - 2056.061) / 3543.994
=41.98 %

Grand Process Technology'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 )
=388.3 / 898.137
=(Revenue - Cost of Goods Sold) / Revenue
=(898.137 - 509.834) / 898.137
=43.23 %

* 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.


Grand Process Technology  (ROCO:3131) 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

Grand Process Technology had a gross margin of 43.23% 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.


Grand Process Technology Gross Margin % Related Terms

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Grand Process Technology (ROCO:3131) Business Description

Traded in Other Exchanges
N/A
Address
No.89, Sec. 6, Zhonghua Road, Xiangshan District, Hsinchu, TWN, 30095
Grand Process Technology Corp operates in semiconductor wet processing equipment industry. The company provides wet process system integration for wafer level package such as wet station, glass slimming machine, flux clean, scrubber, single wafer processors, mask cleaner and others. It also manufactures electrical components and installs semiconductor relative machines.

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