Forcelead Technology (ROCO:6996) Gross Margin % : 40.31% (As of Jun. 2024)

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What is Forcelead Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Forcelead Technology's Gross Profit for the three months ended in Jun. 2024 was NT$589 Mil. Forcelead Technology's Revenue for the three months ended in Jun. 2024 was NT$1,461 Mil. Therefore, Forcelead Technology's Gross Margin % for the quarter that ended in Jun. 2024 was 40.31%.

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

ROCO:6996' s Gross Margin % Range Over the Past 10 Years
Min: 34.3 Med: 38.57 Max: 56.86
Current: 39.4

During the past 4 years, the highest Gross Margin % of Forcelead Technology was 56.86%. The lowest was 34.30%. And the median was 38.57%.

ROCO:6996's Gross Margin % is ranked better than
76.14% of 2414 companies
in the Hardware industry
Industry Median: 24.63 vs ROCO:6996: 39.40

Forcelead Technology had a gross margin of 40.31% for the quarter that ended in Jun. 2024 => Durable competitive advantage

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

Forcelead Technology Gross Margin % Historical Data

The historical data trend for Forcelead Technology'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.

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Forcelead Technology Gross Margin % Chart

Forcelead Technology Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Gross Margin %

34.30

56.86

41.10

36.04

Forcelead Technology Quarterly Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Gross Margin %	Get a 7-Day Free Trial			51.73	30.59	33.32	38.46	40.31

Competitive Comparison of Forcelead Technology's Gross Margin %

For the Electronic Components subindustry, Forcelead Technology'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.

Forcelead Technology's Gross Margin % Distribution in the Hardware Industry

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

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

Forcelead Technology Gross Margin % Calculation

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

Forcelead Technology'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 )
	=	957.5	/	2656.536
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2656.536 - 1699.063)	/	2656.536
	=	36.04 %

Forcelead Technology's Gross Margin for the quarter that ended in Jun. 2024 is calculated as

Gross Margin % (Q: Jun. 2024 )	=	Gross Profit (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	589	/	1461.197
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1461.197 - 872.16)	/	1461.197
	=	40.31 %

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.

Forcelead Technology (ROCO:6996) 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

Forcelead Technology had a gross margin of 40.31% for the quarter that ended in Jun. 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.

Forcelead Technology Gross Margin % Related Terms

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Forcelead Technology Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Forcelead Technology Corp (ROCO:6996) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

6F-9, No. 5, Taiyuan 1st Street, Hsinchu County, Zhubei, TWN, 302

Website

https://www.forcelead.com.tw

Forcelead Technology Corp is an professional integrated chip design company mainly dedicated to the research and development and sales of display driver chips and touch integrated driver chips. Its products are mainly targeted in the automotive field, including display driver chips for instrument panels, center consoles, heads-up displays, electronic rearview mirrors, circular knobs, etc. The products have been mass-produced in major international automobile manufacturers in Asia, Europe, and America.

Forcelead Technology Headlines

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