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Powertech Technology (TPE:6239) Gross Margin % : 17.50% (As of Mar. 2024)


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What is Powertech Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Powertech Technology's Gross Profit for the three months ended in Mar. 2024 was NT$3,207 Mil. Powertech Technology's Revenue for the three months ended in Mar. 2024 was NT$18,329 Mil. Therefore, Powertech Technology's Gross Margin % for the quarter that ended in Mar. 2024 was 17.50%.


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

TPE:6239' s Gross Margin % Range Over the Past 10 Years
Min: 16.63   Med: 20.03   Max: 23.03
Current: 18.19


During the past 13 years, the highest Gross Margin % of Powertech Technology was 23.03%. The lowest was 16.63%. And the median was 20.03%.

TPE:6239's Gross Margin % is ranked worse than
70.61% of 973 companies
in the Semiconductors industry
Industry Median: 28.7 vs TPE:6239: 18.19

Powertech Technology had a gross margin of 17.50% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Powertech Technology was -0.70% per year.


Powertech Technology Gross Margin % Historical Data

The historical data trend for Powertech 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.

* Premium members only.

Powertech Technology Gross Margin % Chart

Powertech Technology Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.06 19.73 23.03 20.70 17.90

Powertech Technology 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 16.10 16.78 17.76 20.54 17.50

Competitive Comparison of Powertech Technology's Gross Margin %

For the Semiconductor Equipment & Materials subindustry, Powertech 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.


Powertech Technology's Gross Margin % Distribution in the Semiconductors Industry

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

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



Powertech Technology Gross Margin % Calculation

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

Powertech 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 )
=12609 / 70440.945
=(Revenue - Cost of Goods Sold) / Revenue
=(70440.945 - 57831.97) / 70440.945
=17.90 %

Powertech Technology'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 )
=3207.1 / 18328.881
=(Revenue - Cost of Goods Sold) / Revenue
=(18328.881 - 15121.828) / 18328.881
=17.50 %

* 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.


Powertech Technology  (TPE:6239) 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

Powertech Technology had a gross margin of 17.50% for the quarter that ended in Mar. 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.


Powertech Technology Gross Margin % Related Terms

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Powertech Technology (TPE:6239) Business Description

Traded in Other Exchanges
N/A
Address
No.10, Datong Road, HuKou, Hsinchu Industrial Park, Hsinchu, TWN, 30352
Powertech Technology Inc is mainly engaged in the manufacturing, packaging, testing, researching and developing, designing, assembling and selling of various integrated circuit products. PTI also provides semiconductor testing and assembly services on a turnkey basis, in which PTI buys fabricated wafers and sells tested and assembled semiconductors. Geographically, the majority of revenue is derived from Japan & Taiwan. The company serves international customers with services including chip bumping, chip probing, IC assembly, final testing, burn-in, and system-level assembly.

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