Dell (DELL) Gross Margin % : 18.53% (As of Jul. 2013)

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What is Dell Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dell's Gross Profit for the three months ended in Jul. 2013 was $2,689.00 Mil. Dell's Revenue for the three months ended in Jul. 2013 was $14,514.00 Mil. Therefore, Dell's Gross Margin % for the quarter that ended in Jul. 2013 was 18.53%.

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

DELL's Gross Margin % is not ranked ^*
in the Hardware industry.
Industry Median: 24.47
* Ranked among companies with meaningful Gross Margin % only.

Dell had a gross margin of 18.53% for the quarter that ended in Jul. 2013 => No sustainable competitive advantage

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

Dell Gross Margin % Historical Data

The historical data trend for Dell'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.

Dell Gross Margin % Chart

Dell Annual Data

Trend

Jan04

Jan05

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Gross Margin %

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17.93

17.51

18.53

22.25

21.40

Dell Quarterly Data
	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13
Gross Margin %	Get a 7-Day Free Trial															21.67	20.93	21.72	19.52	18.53

Competitive Comparison of Dell's Gross Margin %

For the Computer Hardware subindustry, Dell'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.

Dell's Gross Margin % Distribution in the Hardware Industry

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

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

Dell Gross Margin % Calculation

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

Dell's Gross Margin for the fiscal year that ended in Jan. 2013 is calculated as

Gross Margin % (A: Jan. 2013 )	=	Gross Profit (A: Jan. 2013 )	/	Revenue (A: Jan. 2013 )
	=	12186	/	56940
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(56940 - 44754)	/	56940
	=	21.40 %

Dell's Gross Margin for the quarter that ended in Jul. 2013 is calculated as

Gross Margin % (Q: Jul. 2013 )	=	Gross Profit (Q: Jul. 2013 )	/	Revenue (Q: Jul. 2013 )
	=	2689	/	14514
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(14514 - 11825)	/	14514
	=	18.53 %

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.

Dell (DELISTED:DELL) 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

Dell had a gross margin of 18.53% for the quarter that ended in Jul. 2013 => 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.

Dell Gross Margin % Related Terms

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Dell (DELL) Business Description

Industry

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Address

Website

http://www.dell.com

Dell Inc is a Delaware Corporation, which was founded in 1984. The Company offers a range of technology solutions, including servers and networking products, storage products, services, software and peripherals, mobility products, and desktop PCs. The Company sells its products and services directly to customers through dedicated distribution channels, such as retailers, distributors, and resellers. Its business segments are Large Enterprise, Public, Small and Medium Business ('SMB'), and Consumer. Large Enterprise customers include large global and national corporate businesses. Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. SMB segment is focused on helping small and medium-sized businesses get the most out of their technology by offering scalable products, services, and solutions. Consumer segment is focused on delivering what customers want from the total technology experience of entertainment, mobility, gaming, and design. The Company designs, develops, manufactures, markets, sells, and supports a range of products, solutions, and services. The Company also provides various customer financial services to its Commercial and Consumer customers. Its enterprise solutions include servers, networking, and storage products. The Company's services include a range of configurable IT and business services, including infrastructure technology, consulting and applications, and product-related support services. The Company offers Dell-branded printers and displays and a multitude of competitively priced third-party peripheral products such as printers, televisions, notebook accessories, mice, keyboards, networking and wireless products, digital cameras, and other products. The Company also sells a range of third-party software products, including operating systems, business and office applications, anti-virus and related security software, entertainment software, and products in various other categories. Client Products offers a variety of mobility and desktop products, including notebooks, workstations, tablets, smartphones, and desktop PCs, to its Commercial and Consumer customers. The Company offers or arranges various financing options and services for its Commercial and Consumer customers in the U.S. and Canada through Dell Financial Services ('DFS'). DFS offers a range of financial services, including originating, collecting, and servicing customer receivables related to the purchase of Dell products. DFS offers private label credit financing programs to qualified Consumer and Commercial customers and offers leases and fixed-term financing to Commercial customers. The Company sells its products and services directly to customers and through various other sales distribution channels, such as retailers, third-party solution providers, system integrators, and third-party resellers. Its customers include large global and national corpora