Gross Margin % is calculated as gross profit divided by its revenue. DSP Group's Gross Profit for the
three
months ended in Sep. 2021 was $20.9 Mil. DSP Group's Revenue for the
three
months ended in Sep. 2021 was $37.8 Mil. Therefore, DSP Group's Gross Margin % for the quarter that ended in Sep. 2021 was 55.32%.
The historical rank and industry rank for DSP Group's Gross Margin % or its related term are showing as below:
DSPG'
s Gross Margin % Range Over the Past 10 Years
Min: 36.17 Med: 42.81 Max: 53.11
Current: 53.11
During the past 13 years, the highestGross Margin % of DSP Group was 53.11%. The lowest was 36.17%. And the median was 42.81%.
DSPG's Gross Margin % is not ranked
in the Semiconductors industry.
Industry Median: 28.41
vs DSPG: 53.11
DSP Group had a gross margin of 55.32% for the quarter that ended in Sep. 2021 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for DSP Group was 4.30% per year.
DSP Group Gross Margin % Historical Data
The historical data trend for DSP Group'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 DSP Group's Gross Margin %
For the Semiconductors subindustry, DSP Group'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.
DSP Group's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, DSP Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DSP Group'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.
DSP Group (NAS:DSPG) 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
DSP Group had a gross margin of 55.32% for the quarter that ended in Sep. 2021 => 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.
DSP Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of DSP Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
DSP Group Inc provides wireless chipset solutions for converged communications, delivering system solutions that combine semiconductors and software with reference designs. It provides a broad portfolio of wireless chipsets integrating DECT, Wi-Fi, PSTN, and VoIP technologies with state-of-the-art application processors. It also enables converged voice and data connectivity across diverse and enterprise consumer products, from cordless and VoIP phones to home gateways and connected multimedia screens. The company operates in three segments: Home, Unified Communications, and SmartVoice. The majority of the revenue is generated from the sale of wireless chipset solutions for converged communication at home. Its geographical segments are Hong Kong, Japan, Europe, China, Taiwan, and others.
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