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Qorvo (NAS:QRVO) Gross Margin %

: 36.12% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Qorvo's Gross Profit for the three months ended in Dec. 2023 was $388 Mil. Qorvo's Revenue for the three months ended in Dec. 2023 was $1,074 Mil. Therefore, Qorvo's Gross Margin % for the quarter that ended in Dec. 2023 was 36.12%.


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

QRVO' s Gross Margin % Range Over the Past 10 Years
Min: 35.27   Med: 39.44   Max: 49.21
Current: 35.29


During the past 11 years, the highest Gross Margin % of Qorvo was 49.21%. The lowest was 35.27%. And the median was 39.44%.

QRVO's Gross Margin % is ranked better than
61.12% of 967 companies
in the Semiconductors industry
Industry Median: 28.33 vs QRVO: 35.29

Qorvo had a gross margin of 36.12% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Qorvo was 1.60% per year.


Qorvo Gross Margin % Historical Data

The historical data trend for Qorvo'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.

Qorvo Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.67 40.81 46.91 49.21 36.34

Qorvo Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 36.06 18.13 35.18 44.38 36.12

Competitive Comparison

For the Semiconductors subindustry, Qorvo'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.


Qorvo Gross Margin % Distribution

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

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



Qorvo Gross Margin % Calculation

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

Qorvo's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=1296.9 / 3569.399
=(Revenue - Cost of Goods Sold) / Revenue
=(3569.399 - 2272.457) / 3569.399
=36.34 %

Qorvo'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 )
=387.9 / 1073.861
=(Revenue - Cost of Goods Sold) / Revenue
=(1073.861 - 685.983) / 1073.861
=36.12 %

* 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.


Qorvo  (NAS:QRVO) 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

Qorvo had a gross margin of 36.12% 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.


Qorvo Gross Margin % Related Terms

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


Qorvo (NAS:QRVO) Business Description

Traded in Other Exchanges
Address
7628 Thorndike Road, Greensboro, NC, USA, 27409-9421
Qorvo represents the combined entity of RF Micro Devices and TriQuint Semiconductor, which merged in January 2015. The company specializes in radio frequency filters, power amplifiers, and front-end modules used in many of the world's most advanced smartphones. Qorvo also has a suite of products sold into a variety of nonsmartphone end markets, such as wireless base stations, cable TV and networking equipment, and infrastructure and military applications.
Executives
Steven E Creviston officer: VP and Pres. Mobile Products
Gina Harrison officer: VP and Corporate Controller 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Philip Chesley officer: Pres. Infra & Defense 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Walden C Rhines director C/O TRIQUINT SEMICONDUCTOR INC, 2300 NE BROOKWOOD PKWY, HILLSBORO OR 97124
Paul J Fego officer: VP, Global Operations 15 SECOR ROAD, PO BOX 5226, BROOKFIELD CT 06804
Frank P. Stewart officer: SVP, Advanced Cellular 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Roderick Nelson director 2300 NE BROOKWOOD PARKWAY, HILLSBORO OR 97124
Robert A Bruggeworth director, officer: President and CEO C/O RF MICRO DEVICES, INC., 7628 THORNDIKE ROAD, GREENSBORO NC 27409
John R Harding director C/O MARIMBA INC, 440 CLYDE AVENUE, MOUNTAINVIEW CA 94043
Grant Brown officer: SVP & Chief Financial Officer 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Jeffery R Gardner director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
James L Klein officer: VP and Pres. Infra. & Defense 2300NE BROOKWOOD PKWY, HILLSBORO OR 97124
Susan Louise Spradley director C/O NORTEL NETWORKS, 8200 DIXIE ROAD STE 100, BRAMPTON ONTARIO A6 L6T 5PT
Walter H Wilkinson director C/O RF MICRO DEVICES, INC., 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Mark J. Murphy officer: Chief Financial Officer DELPHI AUTOMOTIVE PLC, 5725 DELPHI DRIVE, TROY MI 48098