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NetApp Gross Margin %

: 66.92% (As of Jul. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. NetApp's Gross Profit for the three months ended in Jul. 2020 was $872 Mil. NetApp's Revenue for the three months ended in Jul. 2020 was $1,303 Mil. Therefore, NetApp's Gross Margin % for the quarter that ended in Jul. 2020 was 66.92%.


NAS:NTAP' s Gross Margin % Range Over the Past 10 Years
Min: 59.39   Med: 62.28   Max: 67.15
Current: 67.15
59.39
67.15

During the past 13 years, the highest Gross Margin % of NetApp was 67.15%. The lowest was 59.39%. And the median was 62.28%.

NAS:NTAP's Gross Margin % is ranked higher than
96% of the 2256 Companies
in the Hardware industry.

( Industry Median: 24.79 vs. NAS:NTAP: 67.15 )

NetApp had a gross margin of 66.92% for the quarter that ended in Jul. 2020 => Durable competitive advantage

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

NetApp 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.

NetApp Annual Data
Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 60.82 61.26 62.66 64.19 66.94

NetApp Quarterly Data
Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
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 66.02 67.47 67.02 67.17 66.92
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.

NetApp Gross Margin % Distribution

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


NetApp Gross Margin % Calculation

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

NetApp's Gross Margin for the fiscal year that ended in Apr. 2020 is calculated as

Gross Margin % (A: Apr. 2020 )=Gross Profit (A: Apr. 2020 ) / Revenue (A: Apr. 2020 )
=3623 / 5412
=(Revenue - Cost of Goods Sold) / Revenue
=(5412 - 1789) / 5412
=66.94 %

NetApp's Gross Margin for the quarter that ended in Jul. 2020 is calculated as


Gross Margin % (Q: Jul. 2020 )=Gross Profit (Q: Jul. 2020 ) / Revenue (Q: Jul. 2020 )
=872 / 1303
=(Revenue - Cost of Goods Sold) / Revenue
=(1303 - 431) / 1303
=66.92 %

* 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.

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 66.92% for the quarter that ended in Jul. 2020 => 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

NetApp Gross Margin % Headlines

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