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United Fiber Optic Communication (ROCO:4903) Gross Margin % : 3.68% (As of Sep. 2024)


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What is United Fiber Optic Communication Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. United Fiber Optic Communication's Gross Profit for the three months ended in Sep. 2024 was NT$7.9 Mil. United Fiber Optic Communication's Revenue for the three months ended in Sep. 2024 was NT$213.9 Mil. Therefore, United Fiber Optic Communication's Gross Margin % for the quarter that ended in Sep. 2024 was 3.68%.

Warning Sign:

United Fiber Optic Communication Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.


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

ROCO:4903' s Gross Margin % Range Over the Past 10 Years
Min: 4.78   Med: 11.32   Max: 19.06
Current: 4.78


During the past 13 years, the highest Gross Margin % of United Fiber Optic Communication was 19.06%. The lowest was 4.78%. And the median was 11.32%.

ROCO:4903's Gross Margin % is ranked worse than
93.35% of 2422 companies
in the Hardware industry
Industry Median: 24.655 vs ROCO:4903: 4.78

United Fiber Optic Communication had a gross margin of 3.68% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for United Fiber Optic Communication was -1.20% per year.


United Fiber Optic Communication Gross Margin % Historical Data

The historical data trend for United Fiber Optic Communication'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.

United Fiber Optic Communication Gross Margin % Chart

United Fiber Optic Communication Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.06 12.03 14.76 10.60 8.50

United Fiber Optic Communication Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 15.42 0.66 3.96 10.19 3.68

Competitive Comparison of United Fiber Optic Communication's Gross Margin %

For the Communication Equipment subindustry, United Fiber Optic Communication'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.


United Fiber Optic Communication's Gross Margin % Distribution in the Hardware Industry

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

* The bar in red indicates where United Fiber Optic Communication's Gross Margin % falls into.



United Fiber Optic Communication Gross Margin % Calculation

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

United Fiber Optic Communication'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 )
=58.5 / 687.944
=(Revenue - Cost of Goods Sold) / Revenue
=(687.944 - 629.487) / 687.944
=8.50 %

United Fiber Optic Communication's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=7.9 / 213.852
=(Revenue - Cost of Goods Sold) / Revenue
=(213.852 - 205.982) / 213.852
=3.68 %

* 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.


United Fiber Optic Communication  (ROCO:4903) 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

United Fiber Optic Communication had a gross margin of 3.68% for the quarter that ended in Sep. 2024 => 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.


United Fiber Optic Communication Gross Margin % Related Terms

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


United Fiber Optic Communication Business Description

Traded in Other Exchanges
N/A
Address
No. 12, Creation Road IV, Science-Based Industrial Park, Hsinchu, TWN
United Fiber Optic Communication Inc manufactures and distributes optical fiber cables and transmission equipment. The company mainly engages in exporting and importing products as well as providing services regarding fiber optic cables, related materials and accessories, transmission equipment, dense wavelength division multiplex (DWDM), repeaters, panels and boxes, and preforms, related communications equipment and network workstation systems, FDDI network equipment, optical Cable TV transmitters and receivers, FM PSK multi-band video transmission series, broadband data transmission, and network management systems.

United Fiber Optic Communication Headlines

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