Deswell Industries (Deswell Industries) Gross Margin % : 19.51% (As of Sep. 2023)

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What is Deswell Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Deswell Industries's Gross Profit for the six months ended in Sep. 2023 was $7.36 Mil. Deswell Industries's Revenue for the six months ended in Sep. 2023 was $37.73 Mil. Therefore, Deswell Industries's Gross Margin % for the quarter that ended in Sep. 2023 was 19.51%.

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

DSWL' s Gross Margin % Range Over the Past 10 Years
Min: 8.89 Med: 16.12 Max: 20.29
Current: 18.53

During the past 13 years, the highest Gross Margin % of Deswell Industries was 20.29%. The lowest was 8.89%. And the median was 16.12%.

DSWL's Gross Margin % is ranked worse than
63.97% of 2437 companies
in the Hardware industry
Industry Median: 24.5 vs DSWL: 18.53

Deswell Industries had a gross margin of 19.51% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Deswell Industries was 1.30% per year.

Deswell Industries Gross Margin % Historical Data

The historical data trend for Deswell Industries'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.

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Deswell Industries Gross Margin % Chart

Deswell Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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15.42

18.15

20.29

16.23

16.60

Deswell Industries Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial															16.14	16.30	16.01	17.40	19.51

Competitive Comparison of Deswell Industries's Gross Margin %

For the Electronic Components subindustry, Deswell Industries'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.

Deswell Industries's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Deswell Industries's Gross Margin % distribution charts can be found below:

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

Deswell Industries Gross Margin % Calculation

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

Deswell Industries's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	12.8	/	77.337
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(77.337 - 64.498)	/	77.337
	=	16.60 %

Deswell Industries's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	7.4	/	37.73
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(37.73 - 30.368)	/	37.73
	=	19.51 %

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.

Deswell Industries (NAS:DSWL) 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

Deswell Industries had a gross margin of 19.51% for the quarter that ended in Sep. 2023 => No sustainable 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.

Deswell Industries Gross Margin % Related Terms

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Deswell Industries (Deswell Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Deswell Industries Inc (NAS:DSWL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

DW2:Germany

Address

10B, Edificio Associacao Industrial De Macau, No. 32-36 Rua do Comandante Mata e Oliveira, Macao, MAC

Website

https://www.deswell.com

Deswell Industries Inc is engaged in the manufacturing and selling of injection-molded plastic parts and components. In addition, it also offers manufacturing services for electronic products and subassemblies and manufactures metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company conducts all of its manufacturing activities at separate plastics, electronics and metallic operation factories located in the People's Republic of China. It operates through the Plastic Injection Molding and Electronic Products Assembling segments. The firm offers products such as automobile components, medical testing equipment, parts for audio equipment, av receivers, active subwoofers, digital system key sets, communication products and others.