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Soitec (LTS:0RMT) Gross Margin % : 32.54% (As of Mar. 2024)


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What is Soitec Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Soitec's Gross Profit for the six months ended in Mar. 2024 was €187.6 Mil. Soitec's Revenue for the six months ended in Mar. 2024 was €576.6 Mil. Therefore, Soitec's Gross Margin % for the quarter that ended in Mar. 2024 was 32.54%.


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

LTS:0RMT' s Gross Margin % Range Over the Past 10 Years
Min: 15.53   Med: 33.33   Max: 37.17
Current: 33.96


During the past 13 years, the highest Gross Margin % of Soitec was 37.17%. The lowest was 15.53%. And the median was 33.33%.

LTS:0RMT's Gross Margin % is ranked better than
60.23% of 973 companies
in the Semiconductors industry
Industry Median: 28.7 vs LTS:0RMT: 33.96

Soitec had a gross margin of 32.54% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Soitec was 0.20% per year.


Soitec Gross Margin % Historical Data

The historical data trend for Soitec'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.

Soitec Gross Margin % Chart

Soitec Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.70 31.43 36.58 36.96 33.96

Soitec Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 37.61 35.61 37.99 35.99 32.54

Competitive Comparison of Soitec's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, Soitec'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.


Soitec's Gross Margin % Distribution in the Semiconductors Industry

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

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



Soitec Gross Margin % Calculation

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

Soitec's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=332.1 / 977.913
=(Revenue - Cost of Goods Sold) / Revenue
=(977.913 - 645.837) / 977.913
=33.96 %

Soitec's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=187.6 / 576.562
=(Revenue - Cost of Goods Sold) / Revenue
=(576.562 - 388.942) / 576.562
=32.54 %

* 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.


Soitec  (LTS:0RMT) 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

Soitec had a gross margin of 32.54% for the quarter that ended in Mar. 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.


Soitec Gross Margin % Related Terms

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


Soitec (LTS:0RMT) Business Description

Traded in Other Exchanges
Address
Parc Technologique des Fontaines, Chemin des Franques, Bernin, FRA, 38190
Soitec is a French company that manufactures and sells engineered wafers for the semiconductor industry. Soitec is the number one provider of silicon-on-insulator, or SOI, wafers worldwide and also provides other engineered substrates like gallium nitride or silicon carbide. Soitec sells wafers to fabrication plants that use the them to produce chips. Soitec has facilities in France, Singapore, and China and plans to expand its capacity by 75% from 2022 to 2026.

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