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TE Connectivity Gross Margin %

: 31.88% (As of Sep. 2019)
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Gross Margin % is calculated as gross profit divided by its revenue. TE Connectivity's Gross Profit for the three months ended in Sep. 2019 was $1,052 Mil. TE Connectivity's Revenue for the three months ended in Sep. 2019 was $3,300 Mil. Therefore, TE Connectivity's Gross Margin % for the quarter that ended in Sep. 2019 was 31.88%.


NYSE:TEL' s Gross Margin % Range Over the Past 10 Years
Min: 30.46   Max: 34.33
Current: 32.67

30.46
34.33

During the past 13 years, the highest Gross Margin % of TE Connectivity was 34.33%. The lowest was 30.46%. And the median was 32.92%.

NYSE:TEL's Gross Margin % is ranked higher than
67% of the 2228 Companies
in the Hardware industry.

( Industry Median: 24.36 vs. NYSE:TEL: 32.67 )

TE Connectivity had a gross margin of 31.88% for the quarter that ended in Sep. 2019 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for TE Connectivity was 0.00% per year.


TE Connectivity 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.

TE Connectivity 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 33.41 33.71 34.33 33.92 32.67

TE Connectivity Quarterly Data
Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19
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 33.68 33.28 32.77 32.75 31.88

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.


TE Connectivity Gross Margin % Distribution

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



TE Connectivity Gross Margin % Calculation

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

TE Connectivity'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 )
=4394 / 13448
=(Revenue - Cost of Goods Sold) / Revenue
=(13448 - 9054) / 13448
=32.67 %

TE Connectivity's Gross Margin for the quarter that ended in Sep. 2019 is calculated as


Gross Margin % (Q: Sep. 2019 )=Gross Profit (Q: Sep. 2019 ) / Revenue (Q: Sep. 2019 )
=-2248 / 3300
=(Revenue - Cost of Goods Sold) / Revenue
=(3300 - 2248) / 3300
=31.88 %

* 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.


TE Connectivity  (NYSE:TEL) 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

TE Connectivity had a gross margin of 31.88% for the quarter that ended in Sep. 2019 => 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.


TE Connectivity Gross Margin % Related Terms


TE Connectivity Gross Margin % Headlines

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