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Cambium Networks (Cambium Networks) Gross Margin % : -27.43% (As of Dec. 2023)


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What is Cambium Networks Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cambium Networks's Gross Profit for the three months ended in Dec. 2023 was $-11.0 Mil. Cambium Networks's Revenue for the three months ended in Dec. 2023 was $40.2 Mil. Therefore, Cambium Networks's Gross Margin % for the quarter that ended in Dec. 2023 was -27.43%.

Warning Sign:

Cambium Networks Corp gross margin has been in long-term decline. The average rate of decline per year is -6%.


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

CMBM' s Gross Margin % Range Over the Past 10 Years
Min: 31.26   Med: 49.02   Max: 51.1
Current: 31.26


During the past 8 years, the highest Gross Margin % of Cambium Networks was 51.10%. The lowest was 31.26%. And the median was 49.02%.

CMBM's Gross Margin % is ranked better than
64% of 2439 companies
in the Hardware industry
Industry Median: 24.41 vs CMBM: 31.26

Cambium Networks had a gross margin of -27.43% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cambium Networks was -6.00% per year.


Cambium Networks Gross Margin % Historical Data

The historical data trend for Cambium Networks'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.

Cambium Networks Gross Margin % Chart

Cambium Networks Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 49.14 50.06 47.88 48.89 31.26

Cambium Networks Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 48.95 51.24 49.11 25.46 -27.43

Competitive Comparison of Cambium Networks's Gross Margin %

For the Communication Equipment subindustry, Cambium Networks'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.


Cambium Networks's Gross Margin % Distribution in the Hardware Industry

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

* The bar in red indicates where Cambium Networks's Gross Margin % falls into.



Cambium Networks Gross Margin % Calculation

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

Cambium Networks's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=68.8 / 220.195
=(Revenue - Cost of Goods Sold) / Revenue
=(220.195 - 151.364) / 220.195
=31.26 %

Cambium Networks's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-11 / 40.206
=(Revenue - Cost of Goods Sold) / Revenue
=(40.206 - 51.236) / 40.206
=-27.43 %

* 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.


Cambium Networks  (NAS:CMBM) 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

Cambium Networks had a gross margin of -27.43% for the quarter that ended in Dec. 2023 => No sustainable 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.


Cambium Networks Gross Margin % Related Terms

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


Cambium Networks (Cambium Networks) Business Description

Traded in Other Exchanges
Address
C/o Cambium Networks, Inc, 3800 Golf Road, Suite 360, Rolling Meadows, IL, USA, 60008
Cambium Networks Corp provides wireless broadband networking infrastructure solutions for network operators, including medium-sized wireless Internet service providers, enterprises, and government agencies. The company's scalable, reliable and high-performance solutions create a purpose-built wireless fabric which connects people, places and things across distances ranging from two meters to more than 100 kilometers, indoors and outdoors, using licensed and unlicensed spectrum, at attractive economics. Headquartered outside Chicago and with R&D centers in the U.S., U.K. and India, the company sells through a range of distributors overseas.
Executives
Vikram Verma director 810 WEST MAUDE AVENUE, SUNNYVALE CA 94085
Kevin J Lynch director 201 POST STREET, SUITE 1000, SAN FRANCISCO CA 94108
Archana Nirwan officer: Chief Human Resources Officer 5470 CAMINITO EXQUISITO, SAN DIEGO CA 92130
John Monroy Becerril officer: Controller & Chief Acct Off'r C/O CAMBIUM NETWORKS, INC., 3800 GOLF ROAD, SUITE 360, ROLLING MEADOWS IL 60008
Andrew P Bronstein officer: CFO 10877 WILSHIRE BOULEVARD, 18TH FLOOR, LOS ANGELES CA 90024
Felt Bruce C. Jr. director C/O SUCCESSFACTORS, INC., 1500 FASHION ISLAND BLVD., SUITE 300, SAN MATEO CA 94404
Neal M Kurk other: Relative of CEO/Director RR 1, WEARE NH 03281
Kurk Morgan C S director, officer: President and CEO C/O COMMSCOPE HOLDING COMPANY, INC., 1100 COMMSCOPE PLACE, SE, HICKORY NC 28602
Sally Rau officer: General Counsel PO BOX 59366, SCHAUMBURG IL 60159
Vibhu Vivek officer: Senior VP, Products 136 MILL CREEK ROAD, FREMONT CA 94539
Ronald G Ryan officer: Senior VP, Gbl Channel Mgmt 3355 RYAN TRAIL, MCKINNEY TX 75071
Scott Imhoff officer: Senior VP, Product Mgmt 653 BENT RIDGE LANE, BARRINGTON IL 60010
Graaf Raymond De officer: Senior VP, Operations C/O IXIA, 26601 WEST AGOURA ROAD, CALABASAS CA 91302
Alexander R Slusky director, 10 percent owner 456 MONTGOMERY STREET, 19TH FLOOR, SAN FRANCISCO CA 94104
Robert S Amen director, 10 percent owner C/O CAMBIUM NETWORKS CORPORATION, 38 GOLF ROAD, SUITE 360, ROLLING MEADOWS IL 60008

Cambium Networks (Cambium Networks) Headlines

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