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Celestica (TSX:CLS) Gross Margin % : 10.43% (As of Dec. 2023)


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What is Celestica Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Celestica's Gross Profit for the three months ended in Dec. 2023 was C$299 Mil. Celestica's Revenue for the three months ended in Dec. 2023 was C$2,872 Mil. Therefore, Celestica's Gross Margin % for the quarter that ended in Dec. 2023 was 10.43%.


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

TSX:CLS' s Gross Margin % Range Over the Past 10 Years
Min: 6.49   Med: 7.15   Max: 9.78
Current: 9.78


During the past 13 years, the highest Gross Margin % of Celestica was 9.78%. The lowest was 6.49%. And the median was 7.15%.

TSX:CLS's Gross Margin % is ranked worse than
83.97% of 2439 companies
in the Hardware industry
Industry Median: 24.5 vs TSX:CLS: 9.78

Celestica had a gross margin of 10.43% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Celestica was 9.20% per year.


Celestica Gross Margin % Historical Data

The historical data trend for Celestica'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.

Celestica Gross Margin % Chart

Celestica Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.53 7.61 8.64 8.78 9.78

Celestica 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 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 9.12 8.92 9.52 10.12 10.43

Competitive Comparison of Celestica's Gross Margin %

For the Electronic Components subindustry, Celestica'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.


Celestica's Gross Margin % Distribution in the Hardware Industry

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

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



Celestica Gross Margin % Calculation

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

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

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1044.4 / 10680.478
=(Revenue - Cost of Goods Sold) / Revenue
=(10680.478 - 9636.042) / 10680.478
=9.78 %

Celestica'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 )
=299.4 / 2871.695
=(Revenue - Cost of Goods Sold) / Revenue
=(2871.695 - 2572.25) / 2871.695
=10.43 %

* 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.


Celestica  (TSX:CLS) 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

Celestica had a gross margin of 10.43% for the quarter that ended in Dec. 2023 => 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.


Celestica Gross Margin % Related Terms

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


Celestica (TSX:CLS) Business Description

Traded in Other Exchanges
Address
5140 Yonge Street, Suite 1900, Toronto, ON, CAN, M2N 6L7
Celestica Inc offers supply chain solutions. The company has two operating and reportable segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). The ATS segment consists of the ATS end market and is comprised of the Aerospace and Defense, Industrial, health tech, and Capital Equipment businesses. Its Capital Equipment business is comprised of the semiconductor, display, and robotics equipment businesses, and the CCS segment consists of Communications and Enterprise end markets, Enterprise end market is comprised of its servers and storage businesses. The company generates a majority of its revenue from the Connectivity & Cloud Solutions segment.