Gross Margin % is calculated as gross profit divided by its revenue. MACOM Technology Solutions Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $87.3 Mil. MACOM Technology Solutions Holdings's Revenue for the
three
months ended in Dec. 2023 was $157.1 Mil. Therefore, MACOM Technology Solutions Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 55.56%.
The historical rank and industry rank for MACOM Technology Solutions Holdings's Gross Margin % or its related term are showing as below:
MTSI'
s Gross Margin % Range Over the Past 10 Years
Min: 41.55 Med: 49.69 Max: 60.16
Current: 58
During the past 13 years, the highestGross Margin % of MACOM Technology Solutions Holdings was 60.16%. The lowest was 41.55%. And the median was 49.69%.
MTSI's Gross Margin % is ranked better than 90.74% of 972
companies
in the Semiconductors industry
Industry Median: 28.165
vs MTSI: 58.00
MACOM Technology Solutions Holdings had a gross margin of 55.56% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for MACOM Technology Solutions Holdings was 7.80% per year.
MACOM Technology Solutions Holdings Gross Margin % Historical Data
The historical data trend for MACOM Technology Solutions Holdings'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.
For the Semiconductors subindustry, MACOM Technology Solutions Holdings'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.
MACOM Technology Solutions Holdings Gross Margin % Distribution
For the Semiconductors industry and Technology sector, MACOM Technology Solutions Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MACOM Technology Solutions Holdings's Gross Margin % falls into.
* 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.
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
MACOM Technology Solutions Holdings had a gross margin of 55.56% for the quarter that ended in Dec. 2023 => Durable 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.
MACOM Technology Solutions Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of MACOM Technology Solutions Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
MACOM Technology Solutions Holdings (MACOM Technology Solutions Holdings) Business Description
MACOM Technology Solutions Holdings Inc is a provider of analog, digital and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Taiwan, and other countries across the world.
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