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Nuance Communications Gross Margin %

: 57.39% (As of Jun. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Nuance Communications's Gross Profit for the three months ended in Jun. 2020 was $194 Mil. Nuance Communications's Revenue for the three months ended in Jun. 2020 was $338 Mil. Therefore, Nuance Communications's Gross Margin % for the quarter that ended in Jun. 2020 was 57.39%.


NAS:NUAN' s Gross Margin % Range Over the Past 10 Years
Min: 53.49   Med: 57.33   Max: 63.41
Current: 58.66

53.49
63.41

During the past 13 years, the highest Gross Margin % of Nuance Communications was 63.41%. The lowest was 53.49%. And the median was 57.33%.

NAS:NUAN's Gross Margin % is ranked higher than
64% of the 2010 Companies
in the Software industry.

( Industry Median: 45.96 vs. NAS:NUAN: 58.66 )

Nuance Communications had a gross margin of 57.39% for the quarter that ended in Jun. 2020 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nuance Communications was -0.20% per year.


Nuance Communications 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.

Nuance Communications Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 57.10 57.44 53.49 55.20 57.22

Nuance Communications Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
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 54.49 61.59 55.91 57.47 57.39

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.


Nuance Communications Gross Margin % Distribution

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



Nuance Communications Gross Margin % Calculation

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

Nuance Communications's Gross Margin for the fiscal year that ended in Sep. 2019 is calculated as

Gross Margin % (A: Sep. 2019 )=Gross Profit (A: Sep. 2019 ) / Revenue (A: Sep. 2019 )
=1043.2 / 1823.092
=(Revenue - Cost of Goods Sold) / Revenue
=(1823.092 - 779.919) / 1823.092
=57.22 %

Nuance Communications's Gross Margin for the quarter that ended in Jun. 2020 is calculated as


Gross Margin % (Q: Jun. 2020 )=Gross Profit (Q: Jun. 2020 ) / Revenue (Q: Jun. 2020 )
=194.2 / 338.398
=(Revenue - Cost of Goods Sold) / Revenue
=(338.398 - 144.182) / 338.398
=57.39 %

* 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.


Nuance Communications  (NAS:NUAN) 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

Nuance Communications had a gross margin of 57.39% for the quarter that ended in Jun. 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.


Nuance Communications Gross Margin % Related Terms


Nuance Communications Gross Margin % Headlines

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