Tech Data (Tech Data) Gross Margin % : 6.50% (As of Apr. 2020)

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What is Tech Data Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tech Data's Gross Profit for the three months ended in Apr. 2020 was $532 Mil. Tech Data's Revenue for the three months ended in Apr. 2020 was $8,175 Mil. Therefore, Tech Data's Gross Margin % for the quarter that ended in Apr. 2020 was 6.50%.

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

TECD's Gross Margin % is not ranked ^*
in the Hardware industry.
Industry Median: 24.5
* Ranked among companies with meaningful Gross Margin % only.

Tech Data had a gross margin of 6.50% for the quarter that ended in Apr. 2020 => No sustainable competitive advantage

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

Tech Data Gross Margin % Historical Data

The historical data trend for Tech Data'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.

Tech Data Gross Margin % Chart

Tech Data Annual Data

Trend

Jan11

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Gross Margin %

Get a 7-Day Free Trial

4.88

5.38

6.30

6.06

6.21

Tech Data Quarterly Data
	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20
Gross Margin %	Get a 7-Day Free Trial															6.06	6.18	6.15	6.42	6.50

Competitive Comparison of Tech Data's Gross Margin %

For the Electronics & Computer Distribution subindustry, Tech Data'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.

Tech Data's Gross Margin % Distribution in the Hardware Industry

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

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

Tech Data Gross Margin % Calculation

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

Tech Data's Gross Margin for the fiscal year that ended in Jan. 2020 is calculated as

Gross Margin % (A: Jan. 2020 )	=	Gross Profit (A: Jan. 2020 )	/	Revenue (A: Jan. 2020 )
	=	2297.6	/	36998.421
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(36998.421 - 34700.774)	/	36998.421
	=	6.21 %

Tech Data's Gross Margin for the quarter that ended in Apr. 2020 is calculated as

Gross Margin % (Q: Apr. 2020 )	=	Gross Profit (Q: Apr. 2020 )	/	Revenue (Q: Apr. 2020 )
	=	531.7	/	8175.174
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(8175.174 - 7643.515)	/	8175.174
	=	6.50 %

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.

Tech Data (NAS:TECD) 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

Tech Data had a gross margin of 6.50% for the quarter that ended in Apr. 2020 => 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.

Tech Data Gross Margin % Related Terms

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Tech Data (Tech Data) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Tech Data Corp (NAS:TECD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

5350 Tech Data Drive, Clearwater, FL, USA, 33760

Website

http://www.techdata.com

Tech Data Corp is a wholesale distributor of technology products. It acts as an intermediary in the technology supply chain by bringing products from technology vendors to market and providing customers with logistics capabilities. The firm's customers include value-added resellers, direct marketers, retailers, and corporate resellers. Nearly half of its product mix is broadline products including notebooks, desktops, and printers; the rest includes data center, software, mobility, and consumer electronics products. More than half of the firm's revenue is generated in the Americas and the rest from Europe.

Executives

Karen M Dahut	director	8283 GREENSBORO DRIVE, MCLEAN VA 22102
Bridgette P Heller	director	TECH DATA CORPORATION, 5350 TECH DATA DRIVE, CLEARWATER FL 33760
Richard T Hume	officer: Chief Executive Officer	5350 TECH DATA DRIVE, CLEARWATER FL 33760
Robert M Dutkowsky	director	JD EDWARDS & CO, ONE TECHNOLOGY WAY, DENVER CO 80237
Charles E Adair	director
Thomas I Morgan	director	30541 CARNEY CREEK ROAD, BIGFORK MT 59911
Savio Tung	director	280 PARK AVE, 37TH FLR WEST TOWER, NEW YORK NY 10017
Kathy Misunas	director
Patrick Zammit	officer: President, Europe	KOUTERVELDSTRAAT 20, DIEGEM C9 B-1831
Harczak Harry J Jr	director	C/O XA INVESTMENTS, 1290 BROADWAY STE 1100, DENVER CO 80203
Steven A Raymund	director	C/O TECH DATA CORP, 5350 TECH DATA DRIVE, CLEARWATER FL 33760
Murray N Wright	officer: President, Americas	11126 MCCORMICK ROAD, HUNT VALLEY MD 21031
Kenneth T Lamneck	officer: President, The Americas	INSIGHT ENTERPRISES, INC., 6820 SOUTH HARL AVENUE, TEMPE AZ 85283
Sharon P Nadeau	officer: Senior Vice President HR	6240 SEA HARBOR DR, ORLANDO FL 32821
James M Cracchiolo	director