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Ceragon Networks (Ceragon Networks) Gross Margin % : 34.38% (As of Dec. 2023)


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What is Ceragon Networks Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ceragon Networks's Gross Profit for the three months ended in Dec. 2023 was $31.1 Mil. Ceragon Networks's Revenue for the three months ended in Dec. 2023 was $90.4 Mil. Therefore, Ceragon Networks's Gross Margin % for the quarter that ended in Dec. 2023 was 34.38%.


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

CRNT' s Gross Margin % Range Over the Past 10 Years
Min: 22.75   Med: 31.93   Max: 34.53
Current: 34.53


During the past 13 years, the highest Gross Margin % of Ceragon Networks was 34.53%. The lowest was 22.75%. And the median was 31.93%.

CRNT's Gross Margin % is ranked better than
69.32% of 2438 companies
in the Hardware industry
Industry Median: 24.5 vs CRNT: 34.53

Ceragon Networks had a gross margin of 34.38% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Ceragon Networks was -0.20% per year.


Ceragon Networks Gross Margin % Historical Data

The historical data trend for Ceragon Networks'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.

Ceragon Networks Gross Margin % Chart

Ceragon Networks 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 33.91 28.78 30.39 31.53 34.53

Ceragon Networks Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 32.48 33.78 35.24 34.69 34.38

Competitive Comparison of Ceragon Networks's Gross Margin %

For the Communication Equipment subindustry, Ceragon Networks'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.


Ceragon Networks's Gross Margin % Distribution in the Hardware Industry

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

* The bar in red indicates where Ceragon Networks's Gross Margin % falls into.



Ceragon Networks Gross Margin % Calculation

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

Ceragon Networks'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 )
=119.9 / 347.179
=(Revenue - Cost of Goods Sold) / Revenue
=(347.179 - 227.31) / 347.179
=34.53 %

Ceragon Networks's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=31.1 / 90.359
=(Revenue - Cost of Goods Sold) / Revenue
=(90.359 - 59.296) / 90.359
=34.38 %

* 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.


Ceragon Networks  (NAS:CRNT) 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

Ceragon Networks had a gross margin of 34.38% for the quarter that ended in Dec. 2023 => 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.


Ceragon Networks Gross Margin % Related Terms

Thank you for viewing the detailed overview of Ceragon Networks's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ceragon Networks (Ceragon Networks) Business Description

Traded in Other Exchanges
Address
Building. A, 7th floor, Nitzba City, Plot 300, PO Box 112, Rosh Ha’Ayin, ISR, 4810002
Ceragon Networks Ltd offers wireless backhaul solutions. Its products comprise of FibeAir IP-20 Platform, FibeAir IP-20 Assured Platform, and Network Management. The company provides its services to wireless service providers, public safety organizations, government agencies and utility companies. The company's FibeAir IP-20 platform offers flexibility in choosing all-outdoor, split-mount and all-indoor configurations to suit any deployment scenario. Its products include short haul-access, short haul-aggregation, small cells, long haul, and enterprise access. Geographically, it derives majority revenue from India and also has a presence in North America, Europe, Africa, Asia-Pacific, and the Middle East and Latin America.