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Alcatel-Lucent (Alcatel-Lucent) Gross Margin % : 26.56% (As of Jun. 2016)


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What is Alcatel-Lucent Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Alcatel-Lucent's Gross Profit for the three months ended in Jun. 2016 was $578 Mil. Alcatel-Lucent's Revenue for the three months ended in Jun. 2016 was $2,174 Mil. Therefore, Alcatel-Lucent's Gross Margin % for the quarter that ended in Jun. 2016 was 26.56%.


The historical rank and industry rank for Alcatel-Lucent's Gross Margin % or its related term are showing as below:


ALALF's Gross Margin % is not ranked *
in the Hardware industry.
Industry Median: 24.395
* Ranked among companies with meaningful Gross Margin % only.

Alcatel-Lucent had a gross margin of 26.56% for the quarter that ended in Jun. 2016 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Alcatel-Lucent was 0.00% per year.


Alcatel-Lucent Gross Margin % Historical Data

The historical data trend for Alcatel-Lucent'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.

Alcatel-Lucent Gross Margin % Chart

Alcatel-Lucent Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.97 30.09 32.16 33.45 36.03

Alcatel-Lucent Quarterly Data
Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Jun16
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.59 34.84 34.47 39.41 26.56

Competitive Comparison of Alcatel-Lucent's Gross Margin %

For the Communication Equipment subindustry, Alcatel-Lucent'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.


Alcatel-Lucent's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Alcatel-Lucent's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Alcatel-Lucent's Gross Margin % falls into.



Alcatel-Lucent Gross Margin % Calculation

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

Alcatel-Lucent's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )=Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=5602.4 / 15550.109
=(Revenue - Cost of Goods Sold) / Revenue
=(15550.109 - 9947.712) / 15550.109
=36.03 %

Alcatel-Lucent's Gross Margin for the quarter that ended in Jun. 2016 is calculated as


Gross Margin % (Q: Jun. 2016 )=Gross Profit (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=577.5 / 2174.157
=(Revenue - Cost of Goods Sold) / Revenue
=(2174.157 - 1596.629) / 2174.157
=26.56 %

* 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.


Alcatel-Lucent  (OTCPK:ALALF) 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

Alcatel-Lucent had a gross margin of 26.56% for the quarter that ended in Jun. 2016 => 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.


Alcatel-Lucent Gross Margin % Related Terms

Thank you for viewing the detailed overview of Alcatel-Lucent's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Alcatel-Lucent (Alcatel-Lucent) Business Description

Traded in Other Exchanges
N/A
Address
Alcatel-Lucent SA was incorporated on June 18, 1898. The Company is engaged in designing, manufacturing, operations and sales of equipment, material and software related to domestic, industrial, civil, military or other applications concerning electricity, telecommunications, computers, electronics, aerospace industry, nuclear energy, metallurgy, and, in general, of all the means of production or transmission of energy or communication. The Company's core Networking segment includes three business divisions: IP Routing, IP Transport and IP Platforms. The IP ROUTING focus is on the intelligent IP router market and emerging Software Defined Networking (SDN) markets and related professional services. In IP TRANSPORT segment company designs, manufactures and markets optical networking equipment to transport information over fiber optic connections over long distances on land or under sea, as well as for short distances in metropolitan and regional areas. The portfolio also includes related professional services and microwave wireless transmission equipment. In IP PLATFORMS, the Company offers software and services to service providers that allow them to meet the market evolution needs of mobile and fixed networks. The Company's access segment includes four business divisions: WIRELESS are committed to a wireless access portfolio that is suited to the operators that are moving to 4G/LTE quickly and decisively. FIXED ACCESS IP-based fixed access products and related professional services provides support for both DSL and fiber, allowing service providers to extend Ultra-Broadband access to the customer's premise regardless of technology and to seamlessly combine copper and fiber access technologies and FTTx deployment models to achieve the fastest return-on-investment and time-to-market. In LICENSING the Intellectual Property Business Group works to monetize the patent portfolio through licensing and patent sales while also maintaining and prosecuting patents. The managed services portfolio includes Build-Operate-Manage-Transfer (BOMT) Solutions, Operations Transformation Solutions, and Network Operations Services. These services can be delivered across a wide array of network technologies including Network Access (FTTx), Next generation wireless (LTE, Small Cells, 4G), and IP Networks. The Company's Other segment includes Enterprise and Government businesses to provide end-to-end products, solutions and services for small, medium, large and extra-large companies to improve conversations and collaboration across employees, customers and partners. The Company sells all of its products and services to the world's telecommunications service providers through its direct sales force. The Company's competitors include Avaya, Cisco Systems, Ericsson, Fujitsu, Huawei, Nokia Solutions and Networks (NSN), Samsung, Adtran, Calix, Ciena, Juniper, Ericsson and Huawei.

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