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Taiwan Line Tek Electronic Co (TPE:2462) Gross Margin % : 12.85% (As of Dec. 2024)


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What is Taiwan Line Tek Electronic Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Taiwan Line Tek Electronic Co's Gross Profit for the three months ended in Dec. 2024 was NT$135 Mil. Taiwan Line Tek Electronic Co's Revenue for the three months ended in Dec. 2024 was NT$1,052 Mil. Therefore, Taiwan Line Tek Electronic Co's Gross Margin % for the quarter that ended in Dec. 2024 was 12.85%.


The historical rank and industry rank for Taiwan Line Tek Electronic Co's Gross Margin % or its related term are showing as below:

TPE:2462' s Gross Margin % Range Over the Past 10 Years
Min: 6.18   Med: 10.82   Max: 16.25
Current: 12.54


During the past 13 years, the highest Gross Margin % of Taiwan Line Tek Electronic Co was 16.25%. The lowest was 6.18%. And the median was 10.82%.

TPE:2462's Gross Margin % is ranked worse than
79.16% of 2409 companies
in the Hardware industry
Industry Median: 24.78 vs TPE:2462: 12.54

Taiwan Line Tek Electronic Co had a gross margin of 12.85% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Taiwan Line Tek Electronic Co was 6.80% per year.


Taiwan Line Tek Electronic Co Gross Margin % Historical Data

The historical data trend for Taiwan Line Tek Electronic Co'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.

Taiwan Line Tek Electronic Co Gross Margin % Chart

Taiwan Line Tek Electronic Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.43 6.18 8.49 16.25 12.54

Taiwan Line Tek Electronic Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.22 10.90 15.74 10.40 12.85

Competitive Comparison of Taiwan Line Tek Electronic Co's Gross Margin %

For the Consumer Electronics subindustry, Taiwan Line Tek Electronic Co'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.


Taiwan Line Tek Electronic Co's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Taiwan Line Tek Electronic Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Taiwan Line Tek Electronic Co's Gross Margin % falls into.


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Taiwan Line Tek Electronic Co Gross Margin % Calculation

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

Taiwan Line Tek Electronic Co'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 )
=511.1 / 4074.594
=(Revenue - Cost of Goods Sold) / Revenue
=(4074.594 - 3563.495) / 4074.594
=12.54 %

Taiwan Line Tek Electronic Co'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 )
=135.1 / 1051.762
=(Revenue - Cost of Goods Sold) / Revenue
=(1051.762 - 916.638) / 1051.762
=12.85 %

* 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.


Taiwan Line Tek Electronic Co  (TPE:2462) 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

Taiwan Line Tek Electronic Co had a gross margin of 12.85% 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.


Taiwan Line Tek Electronic Co Gross Margin % Related Terms

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Taiwan Line Tek Electronic Co Business Description

Traded in Other Exchanges
N/A
Address
272 Section. 3, Bei Shen Road, Shen Keng, Taipei, TWN
Taiwan Line Tek Electronic Co Ltd is engaged in the manufacturing, processing, and sales of power transmission cable sets for various computer systems, power transmission cable sets for electrical appliances, signal connection cables for information peripherals, high-efficiency connection cable sets for communication systems, etc. The company provides power cords for computers and cable assemblies.

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