Gross Margin % is calculated as gross profit divided by its revenue. AXT's Gross Profit for the
three
months ended in Dec. 2023 was $4.63 Mil. AXT's Revenue for the
three
months ended in Dec. 2023 was $20.43 Mil. Therefore, AXT's Gross Margin % for the quarter that ended in Dec. 2023 was 22.65%.
Warning Sign:
AXT Inc gross margin has been in long-term decline. The average rate of decline per year is -7.9%.
The historical rank and industry rank for AXT's Gross Margin % or its related term are showing as below:
AXTI'
s Gross Margin % Range Over the Past 10 Years
Min: 17.57 Med: 32.09 Max: 36.93
Current: 17.57
During the past 13 years, the highestGross Margin % of AXT was 36.93%. The lowest was 17.57%. And the median was 32.09%.
AXTI's Gross Margin % is ranked worse than 71.53% of 973
companies
in the Semiconductors industry
Industry Median: 28.41
vs AXTI: 17.57
AXT had a gross margin of 22.65% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for AXT was -7.90% per year.
AXT Gross Margin % Historical Data
The historical data trend for AXT'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 Semiconductor Equipment & Materials subindustry, AXT'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.
AXT's Gross Margin % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, AXT's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AXT'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.
AXT (NAS:AXTI) 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
AXT had a gross margin of 22.65% for the quarter that ended in Dec. 2023 => 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.
AXT Gross Margin % Related Terms
Thank you for viewing the detailed overview of AXT's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
AXT Inc is a developer and producer of compound and single-element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. It is engaged in the design, development, manufacture, and distribution of high-performance compound semiconductor substrates and the sale of materials. The company provides alternative or specialty materials in the form of substrates or wafers, including compound and single-element substrates. Its compound substrates combine indium with phosphorous or gallium with arsenic. Geographically firm has its business presence across the region of Europe, Japan, Taiwan, China, North America, and the Asia Pacific from which China derives its maximum revenue to the company.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
AXTI has been successfully added to your 