Gross Margin % is calculated as gross profit divided by its revenue. Diodes's Gross Profit for the
three
months ended in Sep. 2024 was $118 Mil. Diodes's Revenue for the
three
months ended in Sep. 2024 was $350 Mil. Therefore, Diodes's Gross Margin % for the quarter that ended in Sep. 2024 was 33.71%.
The historical rank and industry rank for Diodes's Gross Margin % or its related term are showing as below:
DIOD'
s Gross Margin % Range Over the Past 10 Years
Min: 29.28 Med: 35.47 Max: 41.35
Current: 33.79
During the past 13 years, the highestGross Margin % of Diodes was 41.35%. The lowest was 29.28%. And the median was 35.47%.
DIOD's Gross Margin % is ranked better than 60.33% of 983
companies
in the Semiconductors industry
Industry Median: 28.41
vs DIOD: 33.79
Diodes had a gross margin of 33.71% for the quarter that ended in Sep. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Diodes was 2.50% per year.
Diodes Gross Margin % Historical Data
The historical data trend for Diodes'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, Diodes'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.
Diodes's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Diodes's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Diodes'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.
Diodes (NAS:DIOD) 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
Diodes had a gross margin of 33.71% for the quarter that ended in Sep. 2024 => 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.
Diodes Gross Margin % Related Terms
Thank you for viewing the detailed overview of Diodes's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Diodes Inc is a manufacturer and supplier of high-quality application-specific products within the broad discrete, logic, analog, and mixed-signal semiconductor markets. It serves the customer electronics, computing, communications, industrial, and automotive markets. The Company's products include diodes; rectifiers; transistors; MOSFETs; GPP bridges; GPP rectifiers; protection devices; function-specific arrays; single gate logic; amplifiers and comparators; Hall-effect and temperature sensors; and power management devices, including LED drivers, AC-DC converters and controllers, DC-DC switching and linear voltage regulators, voltage references along with special-function devices, such as USB power switches, load switches, voltage supervisors, and motor controllers.
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