Market Cap : 2.25 T | Enterprise Value : 2.32 T | PE Ratio : 22.55 | PB Ratio : 33.41 |
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Gross Margin % is calculated as gross profit divided by its revenue. Apple's Gross Profit for the three months ended in Mar. 2022 was $42,559 Mil. Apple's Revenue for the three months ended in Mar. 2022 was $97,278 Mil. Therefore, Apple's Gross Margin % for the quarter that ended in Mar. 2022 was 43.75%.
The historical rank and industry rank for Apple's Gross Margin % or its related term are showing as below:
During the past 13 years, the highest Gross Margin % of Apple was 43.87%. The lowest was 37.62%. And the median was 38.53%.
AAPL's Gross Margin % is ranked better thanApple had a gross margin of 43.75% for the quarter that ended in Mar. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Apple was 0.90% per year.
The historical data trend for Apple'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 Consumer Electronics subindustry, Apple'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.
For the Hardware industry and Technology sector, Apple's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Apple's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Apple's Gross Margin for the fiscal year that ended in Sep. 2021 is calculated as
Gross Margin % (A: Sep. 2021 ) | = | Gross Profit (A: Sep. 2021 ) | / | Revenue (A: Sep. 2021 ) |
= | 152836 | / | 365817 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (365817 - 212981) | / | 365817 | |
= | 41.78 % |
Apple's Gross Margin for the quarter that ended in Mar. 2022 is calculated as
Gross Margin % (Q: Mar. 2022 ) | = | Gross Profit (Q: Mar. 2022 ) | / | Revenue (Q: Mar. 2022 ) |
= | 42559 | / | 97278 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (97278 - 54719) | / | 97278 | |
= | 43.75 % |
* 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
Apple had a gross margin of 43.75% for the quarter that ended in Mar. 2022 => Durable competitive advantage
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.
Thank you for viewing the detailed overview of Apple's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kondo Chris | officer: Principal Accounting Officer | 1 INFINITE LOOP CUPERTINO CA 95014 |
Maestri Luca | officer: Senior Vice President, CFO | 1 INFINITE LOOP CUPERTINO CA 95014 |
Adams Katherine L. | officer: SVP, GC and Secretary | APPLE INC. 1 INFINITE LOOP CUPERTINO CA 95014 |
Williams Jeffrey E | officer: COO | ONE INFINITE LOOP CUPERTINO CA 95014 |
Cook Timothy D | director, officer: Chief Executive Officer | C/O APPLE INC ONE INFINITE LOOP CUPERTINO CA 95014 |
Jung Andrea | director | C/O APPLE INC ONE APPLE PARK WAY CUPERTINO CA 95014 |
Wagner Susan | director | C/O BLACKROCK, INC. 40 EAST 52ND STREET NEW YORK NY 10022 |
Bell James A | director | C/O THE DOW CHEMICAL COMPANY 2211 H.H. DOW WAY MIDLAND MI 48674 |
Levinson Arthur D | director | C/O GENENTECH INC 1 DNA WAY MS 49 SOUTH SAN FRANCISCO CA 94080-4990 |
Sugar Ronald D | director | 10877 WILSHIRE BLVD. SUITE 1650 LOS ANGELES CA 900274 |
Gore Albert Jr | director | C/O APPLE INC 1 INFINITE LOOP CUPERTINO CA 95014 |
Iger Robert A | director | C/O WALT DISNEY CO 500 S BUENA VISTA STREET BURBANK CA 91521-1062 |
Ahrendts Angela J | officer: Senior Vice President | 1 INFINITE LOOP CUPERTINO CA 95014 |
Srouji Johny | officer: Senior Vice President | 1 INFINITE LOOP CUPERTINO CA 95014 |
Federighi Craig | officer: Senior Vice President | 807 11TH AVENUE SUNNYVALE CA 94089 |
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