Gross Margin % is calculated as gross profit divided by its revenue. AudioCodes's Gross Profit for the
three
months ended in Dec. 2023 was $42.4 Mil. AudioCodes's Revenue for the
three
months ended in Dec. 2023 was $63.6 Mil. Therefore, AudioCodes's Gross Margin % for the quarter that ended in Dec. 2023 was 66.70%.
The historical rank and industry rank for AudioCodes's Gross Margin % or its related term are showing as below:
AUDC'
s Gross Margin % Range Over the Past 10 Years
Min: 47.41 Med: 62.6 Max: 68.65
Current: 64.8
During the past 13 years, the highestGross Margin % of AudioCodes was 68.65%. The lowest was 47.41%. And the median was 62.60%.
AUDC's Gross Margin % is ranked better than 95.53% of 2439
companies
in the Hardware industry
Industry Median: 24.41
vs AUDC: 64.80
AudioCodes had a gross margin of 66.70% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for AudioCodes was 3.30% per year.
AudioCodes Gross Margin % Historical Data
The historical data trend for AudioCodes'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 AudioCodes's Gross Margin %
For the Communication Equipment subindustry, AudioCodes'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.
AudioCodes's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, AudioCodes's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AudioCodes'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.
AudioCodes (NAS:AUDC) 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
AudioCodes had a gross margin of 66.70% 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.
AudioCodes Gross Margin % Related Terms
Thank you for viewing the detailed overview of AudioCodes's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
AudioCodes Ltd develops and sells advanced and converged voice over IP and data networking solutions, products and applications to service providers and channels, OEMs, network equipment providers and system integrators. Its products include IP phones, session border controllers, voice applications, multi-service business routers, digital and analog media gateways, among others. The company generates revenues from the sale of products through a direct sales force and sales representatives. Its geographic segments are Israel, Americas, Europe, and the Far East. It derives a majority of the revenues from Americas segment.
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