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Micron Technology (NAS:MU) Gross Margin %

: 39.47% (As of Aug. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Micron Technology's Gross Profit for the three months ended in Aug. 2022 was $2,622 Mil. Micron Technology's Revenue for the three months ended in Aug. 2022 was $6,643 Mil. Therefore, Micron Technology's Gross Margin % for the quarter that ended in Aug. 2022 was 39.47%.

Warning Sign:

Micron Technology Inc gross margin has been in long-term decline. The average rate of decline per year is -3.7%.


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

MU' s Gross Margin % Range Over the Past 10 Years
Min: 20.2   Med: 35.43   Max: 58.87
Current: 45.18


During the past 13 years, the highest Gross Margin % of Micron Technology was 58.87%. The lowest was 20.20%. And the median was 35.43%.

MU's Gross Margin % is ranked better than
72.59% of 901 companies
in the Semiconductors industry
Industry Median: 32.59 vs MU: 45.18

Micron Technology had a gross margin of 39.47% for the quarter that ended in Aug. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Micron Technology was -3.70% per year.


Micron Technology (NAS:MU) Gross Margin % Historical Data

The historical data trend for Micron 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.

Micron Technology Annual Data
Trend Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 58.87 45.72 30.57 37.62 45.18

Micron Technology Quarterly Data
Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 47.28 46.38 47.21 46.69 39.47

Micron Technology (NAS:MU) Gross Margin % Competitive Comparison

For the Semiconductors subindustry, Micron 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.

   

Micron Technology (NAS:MU) Gross Margin % Distribution

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

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



Micron Technology Gross Margin % Calculation

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

Micron Technology's Gross Margin for the fiscal year that ended in Aug. 2022 is calculated as

Gross Margin % (A: Aug. 2022 )=Gross Profit (A: Aug. 2022 ) / Revenue (A: Aug. 2022 )
=13898 / 30758
=(Revenue - Cost of Goods Sold) / Revenue
=(30758 - 16860) / 30758
=45.18 %

Micron Technology's Gross Margin for the quarter that ended in Aug. 2022 is calculated as


Gross Margin % (Q: Aug. 2022 )=Gross Profit (Q: Aug. 2022 ) / Revenue (Q: Aug. 2022 )
=2622 / 6643
=(Revenue - Cost of Goods Sold) / Revenue
=(6643 - 4021) / 6643
=39.47 %

* 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.


Micron Technology  (NAS:MU) 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

Micron Technology had a gross margin of 39.47% for the quarter that ended in Aug. 2022 => 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.


Micron Technology Gross Margin % Related Terms

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


Micron Technology (NAS:MU) Business Description

Micron Technology logo
Address
8000 South Federal Way, Post Office Box 6, Boise, ID, USA, 83716-9632
Micron historically focused on designing and manufacturing DRAM for PCs. The firm then expanded into the NAND flash memory market. It increased its DRAM scale with the purchase of Elpida (completed in mid-2013) and Inotera (completed in December 2016). The firm's DRAM and NAND products tailored to PCs, data centers, smartphones, game consoles, automotives, and other computing devices.
Executives
Murphy Mark J. officer: EVP & Chief Financial Officer DELPHI AUTOMOTIVE PLC 5725 DELPHI DRIVE TROY MI 48098
Beard Robert P officer: SVP, General Counsel&Secretary 8000 S. FEDERAL WAY BOISE ID 83716
Haynesworth Linnie M director 214 N TRYON STREET CHARLOTTE NC 28202
Allen Scott R. officer: CVP, Chief Accounting Officer 11690 N.W. 105TH STREET MIAMI FL 33178
Dugle Lynn A director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Marosvari Paul officer: VP, Chief Accounting Officer 8000 S. FEDERAL WAY BOISE ID 83716
Wright Mary Ann director 250 STEPHENSON HIGHWAY TROY MI 48083
Gomo Steven J director 495 E. JAVA DRIVE SUNNYVALE CA 94089
Mccarthy Mary Pat director 2704 WEST 112TH STREET LEAWOOD KS 66211
Bokan Michael W officer: SVP, WORLDWIDE SALES 8000 S FEDERAL WAY MS 1-557 BOISE ID 83716
Zinsner David officer: SVP & Chief Financial Officer 1001 MURPHY RANCH ROAD MILPITAS CA 95035
Bhatia Manish H officer: EVP, Global Operations C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Sadana Sumit officer: EVP & Chief Business Officer 47544 AVALON HEIGHTS TERRACE FREMONT CA 94539
Mehrotra Sanjay officer: President & CEO C/O WESTERN DIGITAL CORPORATION 3355 MICHELSON DRIVE, SUITE 100 IRVINE CA 92612
Maddock Ernest E officer: CFO & VP, Finance LAM RESEARCH 4650 CUSHING PARKWAY FREMONT CA 94538

Micron Technology (NAS:MU) Headlines

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