Gross Margin % is calculated as gross profit divided by its revenue. SanDisk's Gross Profit for the
three
months ended in Mar. 2016 was $543 Mil. SanDisk's Revenue for the
three
months ended in Mar. 2016 was $1,366 Mil. Therefore, SanDisk's Gross Margin % for the quarter that ended in Mar. 2016 was 39.78%.
The historical rank and industry rank for SanDisk's Gross Margin % or its related term are showing as below:
SNDK's Gross Margin % is not ranked *
in the Hardware industry.
Industry Median: 24.5 * Ranked among companies with meaningful Gross Margin % only.
SanDisk had a gross margin of 39.78% for the quarter that ended in Mar. 2016 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for SanDisk was 0.00% per year.
SanDisk Gross Margin % Historical Data
The historical data trend for SanDisk'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.
Competitive Comparison of SanDisk's Gross Margin %
For the Computer Hardware subindustry, SanDisk'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.
SanDisk's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, SanDisk's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SanDisk'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.
SanDisk (NAS:SNDK) 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
SanDisk had a gross margin of 39.78% for the quarter that ended in Mar. 2016 => 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.
SanDisk Gross Margin % Related Terms
Thank you for viewing the detailed overview of SanDisk's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
SanDisk Corp was incorporated in Delaware in June 1988. The Company designs, develops and manufactures data storage solutions in a variety of form factors using flash memory, controller, firmware and software technologies. Its solutions include SSDs, embedded products, removable cards, universal serial bus, or USB, drives, wireless media drives, digital media players and wafers and components. The Company's SSD products are used in both client computing platforms and enterprise data centers. Its embedded flash products are used in mobile phones, tablets, computing platforms, imaging devices, and many other products. Its removable cards are used in consumer electronics devices such as mobile phones, tablets, digital cameras, gaming devices and personal computers or PCs. The Company operates in one segment, flash memory storage products. It operates in United States, China, Taiwan, Other Asia-Pacific & Europe, Middle East and Africa. The Company competes with NAND flash memory manufacturers, including Hynix, Intel, Micron Technology, Inc., or Micron, Samsung and Toshiba. The Company's primary competitors currently include, among others, Kingston Technology Company, Inc., or Kingston, Lexar Media, Inc., or Lexar, a subsidiary of Micron, PNY Technologies, Inc., or PNY, Samsung, Sony and Transcend Information, Inc., or Transcend. In the USB flash drive market. SanDisk is the Company's trademark, and is registered in the U.S. and other countries.
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