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Transcend Information (TPE:2451) Gross Margin % : 29.10% (As of Sep. 2024)


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What is Transcend Information Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Transcend Information's Gross Profit for the three months ended in Sep. 2024 was NT$732 Mil. Transcend Information's Revenue for the three months ended in Sep. 2024 was NT$2,517 Mil. Therefore, Transcend Information's Gross Margin % for the quarter that ended in Sep. 2024 was 29.10%.


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

TPE:2451' s Gross Margin % Range Over the Past 10 Years
Min: 18.84   Med: 21.99   Max: 32.61
Current: 32.61


During the past 13 years, the highest Gross Margin % of Transcend Information was 32.61%. The lowest was 18.84%. And the median was 21.99%.

TPE:2451's Gross Margin % is ranked better than
65.73% of 2422 companies
in the Hardware industry
Industry Median: 24.655 vs TPE:2451: 32.61

Transcend Information had a gross margin of 29.10% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Transcend Information was 0.80% per year.


Transcend Information Gross Margin % Historical Data

The historical data trend for Transcend Information'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.

Transcend Information Gross Margin % Chart

Transcend Information Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.04 22.88 21.58 29.17 22.46

Transcend Information Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 23.67 31.23 32.81 36.15 29.10

Competitive Comparison of Transcend Information's Gross Margin %

For the Computer Hardware subindustry, Transcend Information'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.


Transcend Information's Gross Margin % Distribution in the Hardware Industry

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

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



Transcend Information Gross Margin % Calculation

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

Transcend Information's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=2722.7 / 12122.35
=(Revenue - Cost of Goods Sold) / Revenue
=(12122.35 - 9399.607) / 12122.35
=22.46 %

Transcend Information'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 )
=732.3 / 2516.92
=(Revenue - Cost of Goods Sold) / Revenue
=(2516.92 - 1784.613) / 2516.92
=29.10 %

* 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.


Transcend Information  (TPE:2451) 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

Transcend Information had a gross margin of 29.10% for the quarter that ended in Sep. 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.


Transcend Information Gross Margin % Related Terms

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Transcend Information Business Description

Traded in Other Exchanges
N/A
Address
No. 70, XingZhong Road, NeiHu District, Taipei, TWN
Transcend Information Inc is engaged in manufacturing, processing and sales of computer software and hardware, peripheral equipment and other computer components. Its product portfolio includes solid-state drives, body cameras, personal cloud storage, memory cards, USB flash drives, memory modules, card readers, and multimedia products. The firm generates revenue in the Americas, Europe, Taiwan, and other countries in the Asia-Pacific region.

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