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Gross Margin % is calculated as gross profit divided by its revenue. Harmonic's Gross Profit for the three months ended in Dec. 2024 was $124.7 Mil. Harmonic's Revenue for the three months ended in Dec. 2024 was $222.2 Mil. Therefore, Harmonic's Gross Margin % for the quarter that ended in Dec. 2024 was 56.11%.
The historical rank and industry rank for Harmonic's Gross Margin % or its related term are showing as below:
During the past 13 years, the highest Gross Margin % of Harmonic was 55.36%. The lowest was 47.40%. And the median was 51.44%.
Harmonic had a gross margin of 56.11% for the quarter that ended in Dec. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Harmonic was -0.40% per year.
The historical data trend for Harmonic'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.
Harmonic Annual Data | |||||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | Dec24 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial |
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51.47 | 51.22 | 50.54 | 51.41 | 53.91 |
Harmonic Quarterly Data | ||||||||||||||||||||
Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | Dec24 | |
Gross Margin % | Get a 7-Day Free Trial |
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49.00 | 51.68 | 52.95 | 53.50 | 56.11 |
For the Communication Equipment subindustry, Harmonic'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.
For the Hardware industry and Technology sector, Harmonic's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Harmonic's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Harmonic's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as
Gross Margin % (A: Dec. 2024 ) | = | Gross Profit (A: Dec. 2024 ) | / | Revenue (A: Dec. 2024 ) |
= | 365.9 | / | 678.722 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (678.722 - 312.801) | / | 678.722 | |
= | 53.91 % |
Harmonic's Gross Margin for the quarter that ended in Dec. 2024 is calculated as
Gross Margin % (Q: Dec. 2024 ) | = | Gross Profit (Q: Dec. 2024 ) | / | Revenue (Q: Dec. 2024 ) |
= | 124.7 | / | 222.166 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (222.166 - 97.515) | / | 222.166 | |
= | 56.11 % |
* 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.
Harmonic (NAS:HLIT) 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
Harmonic had a gross margin of 56.11% for the quarter that ended in Dec. 2024 => 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.
Thank you for viewing the detailed overview of Harmonic's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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Sanjay Kalra | officer: Chief Financial Officer | HARMONIC INC., 4300 NORTH FIRST STREET, SAN JOSE CA 95134 |
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William F Reddersen | director |
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