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Sonos Gross Margin %

: 44.78% (As of Mar. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Sonos's Gross Profit for the three months ended in Mar. 2022 was $179 Mil. Sonos's Revenue for the three months ended in Mar. 2022 was $400 Mil. Therefore, Sonos's Gross Margin % for the quarter that ended in Mar. 2022 was 44.78%.


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

SONO' s Gross Margin % Range Over the Past 10 Years
Min: 41.83   Med: 44.76   Max: 47.18
Current: 46.67


During the past 7 years, the highest Gross Margin % of Sonos was 47.18%. The lowest was 41.83%. And the median was 44.76%.

SONO's Gross Margin % is ranked better than
84.5% of 2348 companies
in the Hardware industry
Industry Median: 24.24 vs SONO: 46.67

Sonos had a gross margin of 44.78% for the quarter that ended in Mar. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sonos was 0.10% per year.


Sonos Gross Margin % Historical Data

The historical data trend for Sonos'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.

Sonos Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Gross Margin %
Premium Member Only Premium Member Only 45.95 43.03 41.83 43.12 47.18

Sonos Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 49.79 46.97 46.43 47.76 44.78

Competitive Comparison

For the Consumer Electronics subindustry, Sonos'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.

   

Sonos Gross Margin % Distribution

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

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



Sonos Gross Margin % Calculation

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

Sonos'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 )
=810 / 1716.744
=(Revenue - Cost of Goods Sold) / Revenue
=(1716.744 - 906.75) / 1716.744
=47.18 %

Sonos's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=179 / 399.781
=(Revenue - Cost of Goods Sold) / Revenue
=(399.781 - 220.747) / 399.781
=44.78 %

* 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.


Sonos  (NAS:SONO) 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

Sonos had a gross margin of 44.78% for the quarter that ended in Mar. 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.


Sonos Gross Margin % Related Terms

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


Sonos Business Description

Sonos logo
Traded in Other Exchanges
Address
614 Chapala Street, Santa Barbara, CA, USA, 93101
Sonos Inc is engaged in providing home sound systems. The company's product profile includes speaker sets and other accessories like boost, mounts, stands, and cables and networking. Geographically, the company operates in the Americas, Europe, the Middle East and Africa, and the Asia Pacific. Generating a majority of its revenue from the Americas.
Executives
Panay Panos director 614 CHAPALA STREET SANTA BARBARA CA 93101
Findlay Deirdre director C/O SONOS, INC. 614 CHAPALA STREET SANTA BARBARA CA 93101
Coles Joanna director C/O SNAP INC. 3000 31ST STREET SANTA MONICA CA 90405
Perri David officer: Chief Operations Officer C/O SONOS, INC. 614 CHAPALA STREET SANTA BARBARA CA 93101
Fraser Anna officer: Chief People Officer C/O SONOS INC. 614 CHAPALA STREET SANTA BARBARA CA 93101
Lazarus Edward P officer: Chief Legal Officer & Secty. C/O TRIBUNE COMPANY 435 NORTH MICHIGAN AVENUE CHICAGO IL 60611
Index Ventures Growth I (jersey) L.p. 10 percent owner NO.1 SEATON PLACE, ST. HELIER JERSEY (CHANNEL ISLANDS) XX JE4 8YJ
Volpi Michelangelo director C/O HORTONWORKS, INC. 3640 W. BAYSHORE RD. PALO ALTO CA 94303
Index Venture Growth Associates I Ltd 10 percent owner 5TH FLOOR, 44 ESPLANADE ST HELIER, CHANNEL ISLANDS Y9 JE1 3FG
Index Ventures Growth I Parallel Entrepreneur Fund (jersey) L.p. 10 percent owner NO.1 SEATON PLACE, ST. HELIER JERSEY (CHANNEL ISLANDS) XX JE4 8YJ
Yucca (jersey) Slp 10 percent owner NO. 1 SEATON PLACE ST. HELIER Y9 Y9 JE48YJ
Spence Patrick director, officer: Chief Executive Officer C/O SONOS, INC. 614 CHAPALA STREET SANTA BARBARA CA 93101
Giannetto Michael officer: Chief Financial Officer 210 CARNEGIE CENTER PRINCETON NJ 08540
Conrad Thomas director 2101 WEBSTER STREET SUITE 1650 OAKLAND CA 94612
Kkr Stream Holdings Llc 10 percent owner 9 WEST 57TH STREET, SUITE 4200 NEW YORK NY 10019

Sonos Headlines

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