Gross Margin % is calculated as gross profit divided by its revenue. Transphorm's Gross Profit for the
three
months ended in Mar. 2022 was $1.14 Mil. Transphorm's Revenue for the
three
months ended in Mar. 2022 was $4.93 Mil. Therefore, Transphorm's Gross Margin % for the quarter that ended in Mar. 2022 was 23.10%.
The historical rank and industry rank for Transphorm's Gross Margin % or its related term are showing as below:
TGAN'
s Gross Margin % Range Over the Past 10 Years
Min: 41.24 Med: 45.6 Max: 47.9
Current: 47.9
During the past 3 years, the highestGross Margin % of Transphorm was 47.90%. The lowest was 41.24%. And the median was 45.60%.
TGAN's Gross Margin % is ranked better than 77.03% of 888
companies
in the Semiconductors industry
Industry Median: 33.17
vs TGAN: 47.90
Transphorm had a gross margin of 23.10% for the quarter that ended in Mar. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Transphorm was 0.00% per year.
Transphorm Gross Margin % Historical Data
The historical data trend for Transphorm'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.
Transphorm Annual Data
Trend
Dec19
Dec20
Mar22
Gross Margin %
45.60
41.24
47.90
Transphorm Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Gross Margin %
26.27
20.18
80.19
14.53
23.10
Competitive Comparison
For the Semiconductor Equipment & Materials subindustry, Transphorm'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.
Transphorm Gross Margin % Distribution
For the Semiconductors industry and Technology sector, Transphorm's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Transphorm'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.
Transphorm (NAS:TGAN) 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
Transphorm had a gross margin of 23.10% for the quarter that ended in Mar. 2022 => Competition eroding margins
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.
Transphorm Gross Margin % Related Terms
Thank you for viewing the detailed overview of Transphorm's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Transphorm Inc is a semiconductor company. It designs and manufactures GaN semiconductors for high-voltage power conversion applications. It produces JEDEC and AEC-Q101 qualified GaN FETs. Its vertically integrated device business model allows for innovation at every development stage: design, fabrication, device, and application support.
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