Gross Margin % is calculated as gross profit divided by its revenue. TD Synnex's Gross Profit for the
three
months ended in Feb. 2024 was $1,006 Mil. TD Synnex's Revenue for the
three
months ended in Feb. 2024 was $13,975 Mil. Therefore, TD Synnex's Gross Margin % for the quarter that ended in Feb. 2024 was 7.20%.
Warning Sign:
TD Synnex Corp gross margin has been in long-term decline. The average rate of decline per year is -4.6%.
The historical rank and industry rank for TD Synnex's Gross Margin % or its related term are showing as below:
SNX'
s Gross Margin % Range Over the Past 10 Years
Min: 5.98 Med: 7.41 Max: 9.75
Current: 7.02
During the past 13 years, the highestGross Margin % of TD Synnex was 9.75%. The lowest was 5.98%. And the median was 7.41%.
SNX's Gross Margin % is ranked worse than 89.83% of 2439
companies
in the Hardware industry
Industry Median: 24.5
vs SNX: 7.02
TD Synnex had a gross margin of 7.20% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TD Synnex was -4.60% per year.
TD Synnex Gross Margin % Historical Data
The historical data trend for TD Synnex'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.
For the Electronics & Computer Distribution subindustry, TD Synnex'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.
TD Synnex Gross Margin % Distribution
For the Hardware industry and Technology sector, TD Synnex's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TD Synnex'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.
TD Synnex (NYSE:SNX) 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
TD Synnex had a gross margin of 7.20% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage
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.
TD Synnex Gross Margin % Related Terms
Thank you for viewing the detailed overview of TD Synnex's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
TD Synnex Corp is a global distributor and solutions aggregator for the IT ecosystem. Its edge-to-cloud portfolio is anchored in some of the technology segments including cloud, cybersecurity, big data/analytics, IoT, mobility, and everything as a service.
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