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Skyworks Solutions (Skyworks Solutions) Gross Margin % : 40.18% (As of Mar. 2024)


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What is Skyworks Solutions Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Skyworks Solutions's Gross Profit for the three months ended in Mar. 2024 was $420 Mil. Skyworks Solutions's Revenue for the three months ended in Mar. 2024 was $1,046 Mil. Therefore, Skyworks Solutions's Gross Margin % for the quarter that ended in Mar. 2024 was 40.18%.

Warning Sign:

Skyworks Solutions Inc gross margin has been in long-term decline. The average rate of decline per year is -1.8%.


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

SWKS' s Gross Margin % Range Over the Past 10 Years
Min: 41.19   Med: 47.89   Max: 50.63
Current: 41.19


During the past 13 years, the highest Gross Margin % of Skyworks Solutions was 50.63%. The lowest was 41.19%. And the median was 47.89%.

SWKS's Gross Margin % is ranked better than
72.25% of 973 companies
in the Semiconductors industry
Industry Median: 28.7 vs SWKS: 41.19

Skyworks Solutions had a gross margin of 40.18% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Skyworks Solutions was -1.80% per year.


Skyworks Solutions Gross Margin % Historical Data

The historical data trend for Skyworks Solutions'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.

Skyworks Solutions Gross Margin % Chart

Skyworks Solutions Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 47.49 48.06 49.18 47.48 44.16

Skyworks Solutions Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 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 45.74 43.33 39.23 42.16 40.18

Competitive Comparison of Skyworks Solutions's Gross Margin %

For the Semiconductors subindustry, Skyworks Solutions'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.


Skyworks Solutions's Gross Margin % Distribution in the Semiconductors Industry

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

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



Skyworks Solutions Gross Margin % Calculation

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

Skyworks Solutions's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=2107.3 / 4772.4
=(Revenue - Cost of Goods Sold) / Revenue
=(4772.4 - 2665.1) / 4772.4
=44.16 %

Skyworks Solutions'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 )
=420.3 / 1046
=(Revenue - Cost of Goods Sold) / Revenue
=(1046 - 625.7) / 1046
=40.18 %

* 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.


Skyworks Solutions  (NAS:SWKS) 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

Skyworks Solutions had a gross margin of 40.18% for the quarter that ended in Mar. 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.


Skyworks Solutions Gross Margin % Related Terms

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


Skyworks Solutions (Skyworks Solutions) Business Description

Address
5260 California Avenue, Irvine, CA, USA, 92617
Skyworks Solutions produces semiconductors for wireless handsets and other devices that are used to enable wireless connectivity. Its main products include power amplifiers, filters, switches, and integrated front-end modules that support wireless transmissions. Skyworks' customers are mostly large smartphone manufacturers, but the firm also has a growing presence in nonhandset applications such as wireless routers, medical devices, and automobiles.
Executives
Karilee A Durham officer: SVP, Human Resources 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Reza Kasnavi officer: SVP, Tech. & Manufacturing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Robert John Terry officer: VP, General Counsel &Secretary 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Kris Sennesael officer: SVP & Chief Financial Officer 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Kevin L Beebe director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
Liam Griffin officer: VP, Sales and Marketing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Philip Matthew Carter officer: VP, Corp. Controller 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Maryann Turcke director C/O NORTHERN STAR INVESTMENT CORP. II, 405 LEXINGTON AVENUE, NEW YORK NY 10174
Suzanne E. Mcbride director C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD, SUITE 1400, MCLEAN VA 22102
Eric Guerin director 1950 HASSELL ROAD, HOFFMAN ESTATES IL 60169
Carlos S Bori officer: VP, Sales & Marketing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Timothy R Furey director 5260 CALIFORNIA AVENUE, IRVINE CA 92617
P Mcglade David director 5260 CALIFORNIA AVENUE, IRVINE CA 92617
David J Aldrich director, officer: President and CEO 20 SYLVAN ROAD, WOBURN MA 01801
Christine King director AMIS HOLDINGS, INC., 2300 BUCKSKIN RD, POCATELLO ID 83201