HP (FRA:7HP) Gross Margin % : 21.90% (As of Jan. 2024)

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What is HP Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. HP's Gross Profit for the three months ended in Jan. 2024 was €2,651 Mil. HP's Revenue for the three months ended in Jan. 2024 was €12,104 Mil. Therefore, HP's Gross Margin % for the quarter that ended in Jan. 2024 was 21.90%.

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

FRA:7HP' s Gross Margin % Range Over the Past 10 Years
Min: 18.25 Med: 19.16 Max: 21.89
Current: 21.89

During the past 13 years, the highest Gross Margin % of HP was 21.89%. The lowest was 18.25%. And the median was 19.16%.

FRA:7HP's Gross Margin % is ranked worse than
55.77% of 2437 companies
in the Hardware industry
Industry Median: 24.5 vs FRA:7HP: 21.89

HP had a gross margin of 21.90% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for HP was 2.90% per year.

HP Gross Margin % Historical Data

The historical data trend for HP'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.

HP Gross Margin % Chart

HP Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Gross Margin %

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19.01

18.40

21.13

19.49

21.42

HP Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %	Get a 7-Day Free Trial															20.20	22.68	21.39	21.60	21.90

Competitive Comparison of HP's Gross Margin %

For the Computer Hardware subindustry, HP'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.

HP's Gross Margin % Distribution in the Hardware Industry

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

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

HP Gross Margin % Calculation

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

HP's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )	=	Gross Profit (A: Oct. 2023 )	/	Revenue (A: Oct. 2023 )
	=	10898.1	/	50870.946
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(50870.946 - 39972.87)	/	50870.946
	=	21.42 %

HP's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	2651.2	/	12103.83
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12103.83 - 9452.646)	/	12103.83
	=	21.90 %

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.

HP (FRA:7HP) 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

HP had a gross margin of 21.90% for the quarter that ended in Jan. 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.

HP Gross Margin % Related Terms

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HP (FRA:7HP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » HP Inc (FRA:7HP) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

HPQ:USA HPQ:Mexico 1HPQ:Italy 7HP:Germany HPQB34:Brazil HPQ:Austria HPQ:Argentina

Address

1501 Page Mill Road, Palo Alto, CA, USA, 94304

Website

https://www.hp.com

HP (formerly Hewlett-Packard) is a behemoth in the PC and printing markets. It has focused on these markets since it exited IT infrastructure in 2015 with the split from Hewlett Packard Enterprise. HP focuses on the commercial market, but maintains sales of consumer devices and printers. The firm has a broad and global customer base, with only one third of sales coming from the U.S. It completely outsources manufacturing and relies heavily on channel partners for its sales and marketing.

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