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Aaeon Technology (TPE:6579) Gross Margin % : 37.49% (As of Jun. 2024)


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What is Aaeon Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Aaeon Technology's Gross Profit for the three months ended in Jun. 2024 was NT$719 Mil. Aaeon Technology's Revenue for the three months ended in Jun. 2024 was NT$1,919 Mil. Therefore, Aaeon Technology's Gross Margin % for the quarter that ended in Jun. 2024 was 37.49%.


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

TPE:6579' s Gross Margin % Range Over the Past 10 Years
Min: 29.22   Med: 32.6   Max: 36.05
Current: 36.05


During the past 13 years, the highest Gross Margin % of Aaeon Technology was 36.05%. The lowest was 29.22%. And the median was 32.60%.

TPE:6579's Gross Margin % is ranked better than
71.41% of 2438 companies
in the Hardware industry
Industry Median: 24.64 vs TPE:6579: 36.05

Aaeon Technology had a gross margin of 37.49% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Aaeon Technology was 0.30% per year.


Aaeon Technology Gross Margin % Historical Data

The historical data trend for Aaeon 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.

Aaeon Technology Gross Margin % Chart

Aaeon Technology 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 30.83 33.57 32.73 29.22 32.96

Aaeon Technology Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Mar24 Jun24
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 32.28 35.50 36.50 34.00 37.49

Competitive Comparison of Aaeon Technology's Gross Margin %

For the Computer Hardware subindustry, Aaeon 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.


Aaeon Technology's Gross Margin % Distribution in the Hardware Industry

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

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



Aaeon Technology Gross Margin % Calculation

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

Aaeon Technology'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 )
=2753.1 / 8352.076
=(Revenue - Cost of Goods Sold) / Revenue
=(8352.076 - 5598.941) / 8352.076
=32.96 %

Aaeon Technology's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=719.4 / 1919.052
=(Revenue - Cost of Goods Sold) / Revenue
=(1919.052 - 1199.668) / 1919.052
=37.49 %

* 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.


Aaeon Technology  (TPE:6579) 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

Aaeon Technology had a gross margin of 37.49% for the quarter that ended in Jun. 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.


Aaeon Technology Gross Margin % Related Terms

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Aaeon Technology Business Description

Traded in Other Exchanges
N/A
Address
No. 135, Lane 235, Baoqiao Road, 5th Floor, Xindian District, New Taipei, TWN, 231
Aaeon Technology Inc is engaged in manufacturing, processing and imports and exports of computer peripherals, electronic components, computer test instruments, computer PCB functional testing, and radio telecommunication equipment and its components; the R&D, design, manufacturing, processing and trading of various industrial computers, medical computers, industrial controllers, quantity controllers and components; industrial computer automation design and services, as well as the import/export of related materials. The operating segment includes IPC and Medical PC, geographical presence of the company is in Taiwan, China, Singapore, USA and Europe.

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