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Broadcom Gross Margin %

: 55.01% (As of Jul. 2019)
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Gross Margin % is calculated as gross profit divided by its revenue. Broadcom's Gross Profit for the three months ended in Jul. 2019 was $3,034 Mil. Broadcom's Revenue for the three months ended in Jul. 2019 was $5,515 Mil. Therefore, Broadcom's Gross Margin % for the quarter that ended in Jul. 2019 was 55.01%.


NAS:AVGO' s Gross Margin % Range Over the Past 10 Years
Min: 37.74   Max: 52.07
Current: 55.09

37.74
52.07

During the past 12 years, the highest Gross Margin % of Broadcom was 52.07%. The lowest was 37.74%. And the median was 47.90%.

NAS:AVGO's Gross Margin % is ranked higher than
90% of the 823 Companies
in the Semiconductors industry.

( Industry Median: 26.75 vs. NAS:AVGO: 55.09 )

Broadcom had a gross margin of 55.01% for the quarter that ended in Jul. 2019 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Broadcom was 1.50% per year.


Broadcom Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Broadcom Annual Data
Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 43.97 52.07 44.86 48.25 51.48

Broadcom Quarterly Data
Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19
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 51.73 53.91 55.42 55.99 55.01

Competitive Comparison
* 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.


Broadcom Gross Margin % Distribution

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



Broadcom Gross Margin % Calculation

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

Broadcom's Gross Margin for the fiscal year that ended in Oct. 2018 is calculated as

Gross Margin % (A: Oct. 2018 )=Gross Profit (A: Oct. 2018 ) / Revenue (A: Oct. 2018 )
=10733 / 20848
=(Revenue - Cost of Goods Sold) / Revenue
=(20848 - 10115) / 20848
=51.48 %

Broadcom's Gross Margin for the quarter that ended in Jul. 2019 is calculated as


Gross Margin % (Q: Jul. 2019 )=Gross Profit (Q: Jul. 2019 ) / Revenue (Q: Jul. 2019 )
=-2481 / 5515
=(Revenue - Cost of Goods Sold) / Revenue
=(5515 - 2481) / 5515
=55.01 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Broadcom  (NAS:AVGO) 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

Broadcom had a gross margin of 55.01% for the quarter that ended in Jul. 2019 => 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.


Broadcom Gross Margin % Related Terms


Broadcom Gross Margin % Headlines

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