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Integrated Memory Logic (TPE:3638) Gross Margin % : 51.99% (As of Jun. 2014)


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What is Integrated Memory Logic Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Integrated Memory Logic's Gross Profit for the three months ended in Jun. 2014 was NT$238 Mil. Integrated Memory Logic's Revenue for the three months ended in Jun. 2014 was NT$458 Mil. Therefore, Integrated Memory Logic's Gross Margin % for the quarter that ended in Jun. 2014 was 51.99%.


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

TPE:3638' s Gross Margin % Range Over the Past 10 Years
Min: 52.24   Med: 53.95   Max: 57.59
Current: 52.3


During the past 5 years, the highest Gross Margin % of Integrated Memory Logic was 57.59%. The lowest was 52.24%. And the median was 53.95%.

TPE:3638's Gross Margin % is not ranked
in the Semiconductors industry.
Industry Median: 28.8 vs TPE:3638: 52.30

Integrated Memory Logic had a gross margin of 51.99% for the quarter that ended in Jun. 2014 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Integrated Memory Logic was 0.00% per year.


Integrated Memory Logic Gross Margin % Historical Data

The historical data trend for Integrated Memory Logic'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.

Integrated Memory Logic Gross Margin % Chart

Integrated Memory Logic Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13
Gross Margin %
57.59 55.22 - 52.24 52.67

Integrated Memory Logic Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 53.09 53.98 51.83 51.39 51.99

Competitive Comparison of Integrated Memory Logic's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, Integrated Memory Logic'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.


Integrated Memory Logic's Gross Margin % Distribution in the Semiconductors Industry

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

* The bar in red indicates where Integrated Memory Logic's Gross Margin % falls into.



Integrated Memory Logic Gross Margin % Calculation

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

Integrated Memory Logic's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin % (A: Dec. 2013 )=Gross Profit (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=1047.6 / 1988.918
=(Revenue - Cost of Goods Sold) / Revenue
=(1988.918 - 941.336) / 1988.918
=52.67 %

Integrated Memory Logic's Gross Margin for the quarter that ended in Jun. 2014 is calculated as


Gross Margin % (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=237.9 / 457.521
=(Revenue - Cost of Goods Sold) / Revenue
=(457.521 - 219.642) / 457.521
=51.99 %

* 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.


Integrated Memory Logic  (TPE:3638) 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

Integrated Memory Logic had a gross margin of 51.99% for the quarter that ended in Jun. 2014 => 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.


Integrated Memory Logic Gross Margin % Related Terms

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Integrated Memory Logic (TPE:3638) Business Description

Traded in Other Exchanges
N/A
Address
Integrated Memory Logic Ltd. provides analog, power management, and mixed signal IC solutions for LCD panel applications. It also designs custom chips; and provides packaging and testing outsourcing services.

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