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Samsung Electronics Co (Samsung Electronics Co) Gross Margin % : 31.96% (As of Dec. 2023)


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What is Samsung Electronics Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Samsung Electronics Co's Gross Profit for the three months ended in Dec. 2023 was $16,608.75 Mil. Samsung Electronics Co's Revenue for the three months ended in Dec. 2023 was $51,962.76 Mil. Therefore, Samsung Electronics Co's Gross Margin % for the quarter that ended in Dec. 2023 was 31.96%.

Warning Sign:

Samsung Electronics Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.4%.


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

SSNHZ' s Gross Margin % Range Over the Past 10 Years
Min: 30.33   Med: 38.72   Max: 46.03
Current: 30.34


During the past 13 years, the highest Gross Margin % of Samsung Electronics Co was 46.03%. The lowest was 30.33%. And the median was 38.72%.

SSNHZ's Gross Margin % is ranked better than
62.35% of 2438 companies
in the Hardware industry
Industry Median: 24.5 vs SSNHZ: 30.34

Samsung Electronics Co had a gross margin of 31.96% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Samsung Electronics Co was -5.40% per year.


Samsung Electronics Co Gross Margin % Historical Data

The historical data trend for Samsung Electronics Co'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.

Samsung Electronics Co Gross Margin % Chart

Samsung Electronics Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 36.09 38.98 40.48 37.12 30.33

Samsung Electronics Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial 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 30.99 27.83 30.59 30.84 31.96

Competitive Comparison of Samsung Electronics Co's Gross Margin %

For the Consumer Electronics subindustry, Samsung Electronics Co'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.


Samsung Electronics Co's Gross Margin % Distribution in the Hardware Industry

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

* The bar in red indicates where Samsung Electronics Co's Gross Margin % falls into.



Samsung Electronics Co Gross Margin % Calculation

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

Samsung Electronics Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=60217.1 / 198510.109
=(Revenue - Cost of Goods Sold) / Revenue
=(198510.109 - 138292.963) / 198510.109
=30.33 %

Samsung Electronics Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=16608.8 / 51962.76
=(Revenue - Cost of Goods Sold) / Revenue
=(51962.76 - 35354.006) / 51962.76
=31.96 %

* 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.


Samsung Electronics Co  (OTCPK:SSNHZ) 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

Samsung Electronics Co had a gross margin of 31.96% for the quarter that ended in Dec. 2023 => 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.


Samsung Electronics Co Gross Margin % Related Terms

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


Samsung Electronics Co (Samsung Electronics Co) Business Description

Address
129, Samsung-ro, Yeongtong-gu, Gyeonggi-do, Suwon-si, KOR, 443-742
Samsung Electronics is a diversified electronics conglomerate that manufactures and sells a wide range of products, including smartphones, semiconductor chips, printers, home appliances, medical equipment, and telecom network equipment. More than half of its profit is generated from semiconductor business, and a further 25% is generated from its mobile handset business, although these percentages vary with the fortunes of each of these businesses. It is the largest smartphone and television manufacturer in the world, which helps provide a base demand for its component businesses, such as memory chips and displays, and is also the largest manufacturer of these globally.