Chunghwa Telecom Co (Chunghwa Telecom Co) Gross Margin % : 35.62% (As of Dec. 2023)

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What is Chunghwa Telecom Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Chunghwa Telecom Co's Gross Profit for the three months ended in Dec. 2023 was $700 Mil. Chunghwa Telecom Co's Revenue for the three months ended in Dec. 2023 was $1,964 Mil. Therefore, Chunghwa Telecom Co's Gross Margin % for the quarter that ended in Dec. 2023 was 35.62%.

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

CHT' s Gross Margin % Range Over the Past 10 Years
Min: 34.03 Med: 35.65 Max: 37.1
Current: 36.77

During the past 13 years, the highest Gross Margin % of Chunghwa Telecom Co was 37.10%. The lowest was 34.03%. And the median was 35.65%.

CHT's Gross Margin % is ranked worse than
66.1% of 354 companies
in the Telecommunication Services industry
Industry Median: 48.97 vs CHT: 36.77

Chunghwa Telecom Co had a gross margin of 35.62% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Chunghwa Telecom Co was 1.40% per year.

Chunghwa Telecom Co Gross Margin % Historical Data

The historical data trend for Chunghwa Telecom 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.

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Chunghwa Telecom Co Gross Margin % Chart

Chunghwa Telecom Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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34.52

34.03

35.98

37.10

36.76

Chunghwa Telecom Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															35.02	37.08	37.85	36.68	35.62

Competitive Comparison of Chunghwa Telecom Co's Gross Margin %

For the Telecom Services subindustry, Chunghwa Telecom 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.

Chunghwa Telecom Co's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Chunghwa Telecom Co's Gross Margin % distribution charts can be found below:

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

Chunghwa Telecom Co Gross Margin % Calculation

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

Chunghwa Telecom 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 )
	=	2605.7	/	7087.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7087.5 - 4481.801)	/	7087.5
	=	36.76 %

Chunghwa Telecom Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	699.6	/	1964.047
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1964.047 - 1264.413)	/	1964.047
	=	35.62 %

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.

Chunghwa Telecom Co (NYSE:CHT) 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

Chunghwa Telecom Co had a gross margin of 35.62% for the quarter that ended in Dec. 2023 => 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.

Chunghwa Telecom Co Gross Margin % Related Terms

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Chunghwa Telecom Co (Chunghwa Telecom Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Chunghwa Telecom Co Ltd (NYSE:CHT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

2412:Taiwan CHWD:Germany

Address

Number 21-3 Hsinyi Road, Section 1, Taipei, TWN, 100

Website

http://www.cht.com.tw

Chunghwa Telecom Co Ltd is Taiwan's largest integrated telecom operator, providing fixed-line, wireless, and Internet and data services. The company enjoys a dominant position in all three segments. It has a market share of 35% in mobile, 85% in broadband, and greater than 95% in the fixed-line segment as measured by the number of local fixed-line subscribers. Chunghwa Telecom was privatized in 2005, with the government retaining 36.3% of the firm's ordinary shares.