The historical rank and industry rank for ON Semiconductor's Gross Margin % or its related term are showing as below:
ON'
s Gross Margin % Range Over the Past 10 Years
Min: 32.65 Med: 36.25 Max: 48.97
Current: 47.06
During the past 13 years, the highestGross Margin % of ON Semiconductor was 48.97%. The lowest was 32.65%. And the median was 36.25%.
ON's Gross Margin % is ranked better than 80.56% of 972
companies
in the Semiconductors industry
Industry Median: 28.165
vs ON: 47.06
ON Semiconductor had a gross margin of 46.67% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ON Semiconductor was 6.50% per year.
ON Semiconductor Gross Margin % Historical Data
The historical data trend for ON Semiconductor'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 ON Semiconductor's Gross Margin %
For the Semiconductors subindustry, ON Semiconductor'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.
ON Semiconductor's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, ON Semiconductor's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ON Semiconductor'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.
ON Semiconductor (NAS:ON) 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
ON Semiconductor had a gross margin of 46.67% for the quarter that ended in Dec. 2023 => 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.
ON Semiconductor Gross Margin % Related Terms
Thank you for viewing the detailed overview of ON Semiconductor's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ON Semiconductor (ON Semiconductor) Business Description
Onsemi is a supplier of power semiconductors and sensors focused on the automotive and industrial markets. Onsemi is the second-largest power chipmaker in the world and the largest supplier of image sensors to the automotive market. While the firm used to be highly vertically integrated, it now pursues a hybrid manufacturing strategy for flexible capacity. Onsemi is pivoting to focus on emerging applications like electric vehicles, autonomous vehicles, industrial automation, and renewable energy.
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