TE Connectivity (TE Connectivity) Gross Margin % : 34.56% (As of Dec. 2023)

View and export this data going back to 2007. Start your Free Trial

What is TE Connectivity Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. TE Connectivity's Gross Profit for the three months ended in Dec. 2023 was $1,324 Mil. TE Connectivity's Revenue for the three months ended in Dec. 2023 was $3,831 Mil. Therefore, TE Connectivity's Gross Margin % for the quarter that ended in Dec. 2023 was 34.56%.

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

TEL' s Gross Margin % Range Over the Past 10 Years
Min: 30.69 Med: 32.96 Max: 34.33
Current: 32.4

During the past 13 years, the highest Gross Margin % of TE Connectivity was 34.33%. The lowest was 30.69%. And the median was 32.96%.

TEL's Gross Margin % is ranked better than
65.87% of 2438 companies
in the Hardware industry
Industry Median: 24.5 vs TEL: 32.40

TE Connectivity had a gross margin of 34.56% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for TE Connectivity was -1.00% per year.

TE Connectivity Gross Margin % Historical Data

The historical data trend for TE Connectivity'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.

TE Connectivity Gross Margin % Chart

TE Connectivity Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Gross Margin %

Get a 7-Day Free Trial

32.67

30.69

32.75

32.21

31.53

TE Connectivity 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															30.90	30.87	32.49	31.85	34.56

Competitive Comparison of TE Connectivity's Gross Margin %

For the Electronic Components subindustry, TE Connectivity'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.

TE Connectivity's Gross Margin % Distribution in the Hardware Industry

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

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

TE Connectivity Gross Margin % Calculation

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

TE Connectivity's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )	=	Gross Profit (A: Sep. 2023 )	/	Revenue (A: Sep. 2023 )
	=	5055	/	16034
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(16034 - 10979)	/	16034
	=	31.53 %

TE Connectivity'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 )
	=	1324	/	3831
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3831 - 2507)	/	3831
	=	34.56 %

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.

TE Connectivity (NYSE:TEL) 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

TE Connectivity had a gross margin of 34.56% 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.

TE Connectivity Gross Margin % Related Terms

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

TE Connectivity (TE Connectivity) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » TE Connectivity Ltd (NYSE:TEL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Muhlenstrasse 26, Schaffhausen, CHE, CH-8200

Website

https://www.te.com

TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.

Executives

Terrence R Curtin	director, officer: EVP & Chief Financial Officer	C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312
John S Jenkins	officer: EVP & General Counsel	1050 WESTLAKES DRIVE, BERWYN PA 19312
Heath A Mitts	officer: EVP & Chief Financial Officer	1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Malavika Sagar	officer: SVP, Chief Human Resources Off	1050 WESTLAKES DRIVE, BERWYN PA 19312
Jean-pierre Clamadieu	director	1050 WESTLAKES DRIVE, BERWYN PA 19312
Shadrak W Kroeger	officer: Pres., Communications Solution	1050 WESTLAKES DRIVE, BERWYN PA 19312
Abhijit Y Talwalkar	director	ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Tim Murphy	officer: SVP & CHRO	1050 WESTLAKES DRIVE, BERWYN PA 19312
Thomas J Lynch	director, officer: Chief Executive Officer	7 LAKEVIEW DRIVE, NEWTOWN PA 19840
Syaru Shirley Lin	director
Robert J Ott	officer: Sr VP & Controller	C/O TYCO ELECTRONICS LTD, 1050 WESTLAKES DRIVE, BERWYN PA 19312
Steven T Merkt	officer: President, Transportation Sol.	1050 WESTLAKES DRIVE, BERWYN PA 19312
Daniel J Phelan	director	C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312
Aaron Kyle Stucki	officer: Pres. Communications Solutions	1050 WESTLAKES DRIVE, BERWYN PA 19312
Eric Resch	director, officer: SVP and Tax Officer	C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312