GURUFOCUS.COM » STOCK LIST » USA » NAS » Qualcomm Inc (NAS:QCOM) » Definitions » Gross Margin %
Switch to:

Qualcomm Gross Margin %

: 55.96% (As of Jun. 2022)
View and export this data going back to 1991. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. Qualcomm's Gross Profit for the three months ended in Jun. 2022 was $6,120 Mil. Qualcomm's Revenue for the three months ended in Jun. 2022 was $10,936 Mil. Therefore, Qualcomm's Gross Margin % for the quarter that ended in Jun. 2022 was 55.96%.


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

QCOM' s Gross Margin % Range Over the Past 10 Years
Min: 54.69   Med: 59.31   Max: 64.57
Current: 57.99


During the past 13 years, the highest Gross Margin % of Qualcomm was 64.57%. The lowest was 54.69%. And the median was 59.31%.

QCOM's Gross Margin % is ranked better than
89.32% of 899 companies
in the Semiconductors industry
Industry Median: 33.41 vs QCOM: 57.99

Qualcomm had a gross margin of 55.96% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Qualcomm was 0.90% per year.


Qualcomm Gross Margin % Historical Data

The historical data trend for Qualcomm'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.

Qualcomm Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 56.01 54.69 64.57 60.67 57.51

Qualcomm Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 57.77 57.83 59.80 58.37 55.96

Competitive Comparison

For the Semiconductors subindustry, Qualcomm'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.

   

Qualcomm Gross Margin % Distribution

For the Semiconductors industry and Technology sector, Qualcomm's Gross Margin % distribution charts can be found below:

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



Qualcomm Gross Margin % Calculation

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

Qualcomm's Gross Margin for the fiscal year that ended in Sep. 2021 is calculated as

Gross Margin % (A: Sep. 2021 )=Gross Profit (A: Sep. 2021 ) / Revenue (A: Sep. 2021 )
=19304 / 33566
=(Revenue - Cost of Goods Sold) / Revenue
=(33566 - 14262) / 33566
=57.51 %

Qualcomm's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=6120 / 10936
=(Revenue - Cost of Goods Sold) / Revenue
=(10936 - 4816) / 10936
=55.96 %

* 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.


Qualcomm  (NAS:QCOM) 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

Qualcomm had a gross margin of 55.96% for the quarter that ended in Jun. 2022 => 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.


Qualcomm Gross Margin % Related Terms

Thank you for viewing the detailed overview of Qualcomm's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Qualcomm Business Description

Qualcomm logo
Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. The firm is a leader in 5G network technology as well. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones and chips into automotive and Internet of Things markets.
Executives
Cathey James J officer: Chief Commercial Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Chaplin Ann C officer: General Counsel&Corp Secretary 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Acevedo Sylvia director 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Johnson Gregory N director C/O INTUIT INC. 2700 COAST AVENUE MOUNTAIN VIEW CA 94043
Tricoire Jean-pascal director 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Miller Jamie S director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Ace Heather S officer: EVP, Human Resources 3721 VALLEY CENTRE DR SUITE 500 SAN DIEGO CA 92130
Palkhiwala Akash J. officer: SVP & Interim CFO 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Wise David officer: Interim CFO 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Polek Erin L officer: SVP Corporate Controller & CAO 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Anstice Martin B director 4650 CUSHING PARKWAY FREMONT CA 94538
Rosenfeld Irene B director 999 VANDERBILT BEACH ROAD SUITE 601 NAPLES FL 34108
Mollenkopf Steven M director, officer: Chief Executive Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Smit Neil director C/O AMERICA ONLINE LATIN AMERICA, INC. 6600 N. ANDREWS AVE., SUITE 400 FT. LAUDERDALE FL 33309
Fields Mark director FORD MOTOR COMPANY ONE AMERICAN ROAD DEARBORN MI 48126

Qualcomm Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)