Gross Margin % is calculated as gross profit divided by its revenue. Activision Blizzard's Gross Profit for the
three
months ended in Jun. 2022 was $1,159 Mil. Activision Blizzard's Revenue for the
three
months ended in Jun. 2022 was $1,644 Mil. Therefore, Activision Blizzard's Gross Margin % for the quarter that ended in Jun. 2022 was 70.50%.
The historical rank and industry rank for Activision Blizzard's Gross Margin % or its related term are showing as below:
ATVI'
s Gross Margin % Range Over the Past 10 Years
Min: 63.77 Med: 66.23 Max: 73.68
Current: 71.89
During the past 13 years, the highestGross Margin % of Activision Blizzard was 73.68%. The lowest was 63.77%. And the median was 66.23%.
ATVI's Gross Margin % is ranked better than 61.93% of 528
companies
in the Interactive Media industry
Industry Median: 60.70
vs ATVI: 71.89
Activision Blizzard had a gross margin of 70.50% for the quarter that ended in Jun. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Activision Blizzard was 3.10% per year.
Activision Blizzard Gross Margin % Historical Data
The historical data trend for Activision Blizzard'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.
Activision Blizzard Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Gross Margin %
64.36
66.44
67.73
72.05
73.68
Activision Blizzard Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Gross Margin %
75.83
74.54
69.58
72.91
70.50
Competitive Comparison
For the Electronic Gaming & Multimedia subindustry, Activision Blizzard'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.
Activision Blizzard Gross Margin % Distribution
For the Interactive Media industry and Communication Services sector, Activision Blizzard's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Activision Blizzard'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
Activision Blizzard had a gross margin of 70.50% for the quarter that ended in Jun. 2022 => 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.
Activision Blizzard Gross Margin % Related Terms
Thank you for viewing the detailed overview of Activision Blizzard's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Activision Blizzard was formed in 2008 by the merger of Activision, one of the largest console video game publishers, and Blizzard, one of largest PC video game publishers. The combined firm remains one of the world's largest video game publishers. Activision's impressive franchise portfolio includes World of Warcraft, which boasts more than $8 billion of lifetime sales, and Call of Duty, which has sold over 175 million copies across 14 titles over 12 years.
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