Gross Margin % is calculated as gross profit divided by its revenue. Power Integrations's Gross Profit for the
three
months ended in Dec. 2023 was $46.2 Mil. Power Integrations's Revenue for the
three
months ended in Dec. 2023 was $89.5 Mil. Therefore, Power Integrations's Gross Margin % for the quarter that ended in Dec. 2023 was 51.63%.
The historical rank and industry rank for Power Integrations's Gross Margin % or its related term are showing as below:
POWI'
s Gross Margin % Range Over the Past 10 Years
Min: 49.32 Med: 51.01 Max: 56.35
Current: 51.5
During the past 13 years, the highestGross Margin % of Power Integrations was 56.35%. The lowest was 49.32%. And the median was 51.01%.
POWI's Gross Margin % is ranked better than 85.8% of 972
companies
in the Semiconductors industry
Industry Median: 28.165
vs POWI: 51.50
Power Integrations had a gross margin of 51.63% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Power Integrations was 1.00% per year.
Power Integrations Gross Margin % Historical Data
The historical data trend for Power Integrations'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.
For the Semiconductors subindustry, Power Integrations'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.
Power Integrations Gross Margin % Distribution
For the Semiconductors industry and Technology sector, Power Integrations's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Power Integrations'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.
Power Integrations (NAS:POWI) 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
Power Integrations had a gross margin of 51.63% 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.
Power Integrations Gross Margin % Related Terms
Thank you for viewing the detailed overview of Power Integrations's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Power Integrations (Power Integrations) Business Description
Power Integrations Inc design, develop and market analog and mixed-signal integrated circuits (ICs) and other electronic components and circuitry used in high-voltage power conversion. Products are used in power converters that convert electricity from a high-voltage source to the type of power required for a specified downstream use. Products are used in electronic products including mobile phones, computing and networking equipment, appliances, electronic utility meters, battery-powered tools, industrial controls, and home-automation, or internet of things applications such as networked thermostats, power strips and security devices. Geographically, revenue is generated in China and Hong Kong.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
POWI has been successfully added to your 