Adtran Networks SE (WBO:ADV) Gross Margin % : 35.08% (As of Jun. 2023)

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What is Adtran Networks SE Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Adtran Networks SE's Gross Profit for the three months ended in Jun. 2023 was €59.7 Mil. Adtran Networks SE's Revenue for the three months ended in Jun. 2023 was €170.2 Mil. Therefore, Adtran Networks SE's Gross Margin % for the quarter that ended in Jun. 2023 was 35.08%.

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

WBO:ADV' s Gross Margin % Range Over the Past 10 Years
Min: 29.34 Med: 34.8 Max: 36.23
Current: 33.89

During the past 13 years, the highest Gross Margin % of Adtran Networks SE was 36.23%. The lowest was 29.34%. And the median was 34.80%.

WBO:ADV's Gross Margin % is ranked better than
68.38% of 2438 companies
in the Hardware industry
Industry Median: 24.5 vs WBO:ADV: 33.89

Adtran Networks SE had a gross margin of 35.08% for the quarter that ended in Jun. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Adtran Networks SE was -0.50% per year.

Adtran Networks SE Gross Margin % Historical Data

The historical data trend for Adtran Networks SE'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.

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Adtran Networks SE Gross Margin % Chart

Adtran Networks SE Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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34.29

34.79

36.23

32.99

35.62

Adtran Networks SE Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															33.62	34.60	32.26	35.08	-

Competitive Comparison of Adtran Networks SE's Gross Margin %

For the Communication Equipment subindustry, Adtran Networks SE'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.

Adtran Networks SE's Gross Margin % Distribution in the Hardware Industry

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

* The bar in red indicates where Adtran Networks SE's Gross Margin % falls into.

Adtran Networks SE Gross Margin % Calculation

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

Adtran Networks SE'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 )
	=	218.6	/	613.671
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(613.671 - 395.109)	/	613.671
	=	35.62 %

Adtran Networks SE's Gross Margin for the quarter that ended in Jun. 2023 is calculated as

Gross Margin % (Q: Jun. 2023 )	=	Gross Profit (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	59.7	/	170.188
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(170.188 - 110.484)	/	170.188
	=	35.08 %

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.

Adtran Networks SE (WBO:ADV) 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

Adtran Networks SE had a gross margin of 35.08% for the quarter that ended in Jun. 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.

Adtran Networks SE Gross Margin % Related Terms

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Adtran Networks SE (WBO:ADV) Business Description

Industry

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ADVOF:USA 0NOL:UK ADV:Germany

Address

Campus Martinsried, Fraunhoferstrasse 9a, Munich, BY, DEU, 82152

Website

https://www.adva.com

Adtran Networks SE Formerly ADVA Optical Networking SE develops, manufactures, and sells optical and Ethernet-based networking solutions to telecommunications carriers and enterprises. These systems are used by telecommunications service providers, private companies, universities, and government agencies. Some of its product categories are Open optical transport, Packet edge and aggregation, Disaggregated networking, Network virtualization, Network infrastructure assurance, and Automated network management. ADVA's geographical segments are Germany; the Rest of Europe, the Middle East and Africa; the Americas; and Asia-Pacific.