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Acer Gadget (TPE:2432) Gross Margin % : 14.55% (As of Dec. 2024)


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What is Acer Gadget Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Acer Gadget's Gross Profit for the three months ended in Dec. 2024 was NT$106 Mil. Acer Gadget's Revenue for the three months ended in Dec. 2024 was NT$726 Mil. Therefore, Acer Gadget's Gross Margin % for the quarter that ended in Dec. 2024 was 14.55%.

Warning Sign:

Acer Gadget Inc gross margin has been in long-term decline. The average rate of decline per year is -15.4%.


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

TPE:2432' s Gross Margin % Range Over the Past 10 Years
Min: 13.22   Med: 15.45   Max: 44.13
Current: 13.22


During the past 6 years, the highest Gross Margin % of Acer Gadget was 44.13%. The lowest was 13.22%. And the median was 15.45%.

TPE:2432's Gross Margin % is ranked worse than
77.7% of 2417 companies
in the Hardware industry
Industry Median: 24.66 vs TPE:2432: 13.22

Acer Gadget had a gross margin of 14.55% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Acer Gadget was -15.40% per year.


Acer Gadget Gross Margin % Historical Data

The historical data trend for Acer Gadget'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.

Acer Gadget Gross Margin % Chart

Acer Gadget Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial 14.79 15.30 15.61 15.60 13.22

Acer Gadget Quarterly Data
Dec19 Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 18.76 11.55 13.53 12.95 14.55

Competitive Comparison of Acer Gadget's Gross Margin %

For the Computer Hardware subindustry, Acer Gadget'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.


Acer Gadget's Gross Margin % Distribution in the Hardware Industry

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

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


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Acer Gadget Gross Margin % Calculation

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

Acer Gadget'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 )
=344.4 / 2605.483
=(Revenue - Cost of Goods Sold) / Revenue
=(2605.483 - 2261.066) / 2605.483
=13.22 %

Acer Gadget'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 )
=105.7 / 726.343
=(Revenue - Cost of Goods Sold) / Revenue
=(726.343 - 620.64) / 726.343
=14.55 %

* 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.


Acer Gadget  (TPE:2432) 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

Acer Gadget had a gross margin of 14.55% for the quarter that ended in Dec. 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.


Acer Gadget Gross Margin % Related Terms

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Acer Gadget Business Description

Traded in Other Exchanges
N/A
Address
No. 369, Fuxing North Road, 5th Floor, 7th Floor, Songshan District, Taipei City, TWN, 10541
Acer Gadget Inc is mainly engaged in telecom value-added network business, computer hardware, and software applications Use system design, sales, rental, and sales of computer innovation peripheral products and life smart products, and other related businesses. Smart device products, smart wearables, value-added business and smart solution are the company's reportable segments. It earns the majority of its revenue from the Smart device products segment.

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