Gross Margin % is calculated as gross profit divided by its revenue. NetApp's Gross Profit for the
three
months ended in Oct. 2021 was $1,059 Mil. NetApp's Revenue for the
three
months ended in Oct. 2021 was $1,566 Mil. Therefore, NetApp's Gross Margin % for the quarter that ended in Oct. 2021 was 67.62%.
The historical rank and industry rank for NetApp's Gross Margin % or its related term are showing as below:
NAS:NTAP'
s Gross Margin % Range Over the Past 10 Years
Min: 59.39 Med: 62.28 Max: 67.25
Current: 67.25
59.39
-
67.25
During the past 13 years, the highestGross Margin % of NetApp was 67.25%. The lowest was 59.39%. And the median was 62.28%.
NAS:NTAP's Gross Margin % is ranked higher than
96% of the 2297
Companies
in the Hardware industry.
( Industry Median: 24.69
vs. NAS:NTAP: 67.25
)
NetApp had a gross margin of 67.62% for the quarter that ended in Oct. 2021 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for NetApp was 2.10% per year.
NetApp Gross Margin % Historical Data
The historical data trend for NetApp'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.
NetApp Annual Data
Trend
Apr12
Apr13
Apr14
Apr15
Apr16
Apr17
Apr18
Apr19
Apr20
Apr21
Gross Margin %
61.26
62.66
64.19
66.94
66.42
NetApp Quarterly Data
Jan17
Apr17
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Gross Margin %
65.89
66.33
66.56
68.52
67.62
Competitive Comparison
For the Computer Hardware subindustry, NetApp'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.
NetApp Gross Margin % Distribution
For the Hardware industry and Technology sector, NetApp's Gross Margin % distribution charts can be found below:
* The bar in red indicates where NetApp'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.
NetApp (NAS:NTAP) 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
NetApp had a gross margin of 67.62% for the quarter that ended in Oct. 2021 => 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.
NetApp Gross Margin % Related Terms
Thank you for viewing the detailed overview of NetApp's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
NetApp is a leading provider of enterprise data management and storage solutions. The company's three operating business units are products, software maintenance, and hardware maintenance. NetApp transitioned from a data center storage firm to a company with software data management solutions for multicloud environments. The California-headquartered company sells globally and has approximately 10,000 employees.
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