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Western Digital Gross Margin %

: 22.08% (As of Dec. 2019)
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Gross Margin % is calculated as gross profit divided by its revenue. Western Digital's Gross Profit for the three months ended in Dec. 2019 was $935 Mil. Western Digital's Revenue for the three months ended in Dec. 2019 was $4,234 Mil. Therefore, Western Digital's Gross Margin % for the quarter that ended in Dec. 2019 was 22.08%.


NAS:WDC' s Gross Margin % Range Over the Past 10 Years
Min: 17.57   Max: 37.32
Current: 17.57

17.57
37.32

During the past 13 years, the highest Gross Margin % of Western Digital was 37.32%. The lowest was 17.57%. And the median was 28.62%.

NAS:WDC's Gross Margin % is ranked lower than
66% of the 2262 Companies
in the Hardware industry.

( Industry Median: 24.30 vs. NAS:WDC: 17.57 )

Western Digital had a gross margin of 22.08% for the quarter that ended in Dec. 2019 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Western Digital was -0.80% per year.


Western Digital Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Western Digital Annual Data
Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.97 26.44 31.80 37.32 22.64

Western Digital Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 24.66 15.76 12.80 18.76 22.08

Competitive Comparison
* 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.


Western Digital Gross Margin % Distribution

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



Western Digital Gross Margin % Calculation

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

Western Digital's Gross Margin for the fiscal year that ended in Jun. 2019 is calculated as

Gross Margin % (A: Jun. 2019 )=Gross Profit (A: Jun. 2019 ) / Revenue (A: Jun. 2019 )
=3752 / 16569
=(Revenue - Cost of Goods Sold) / Revenue
=(16569 - 12817) / 16569
=22.64 %

Western Digital's Gross Margin for the quarter that ended in Dec. 2019 is calculated as


Gross Margin % (Q: Dec. 2019 )=Gross Profit (Q: Dec. 2019 ) / Revenue (Q: Dec. 2019 )
=-3299 / 4234
=(Revenue - Cost of Goods Sold) / Revenue
=(4234 - 3299) / 4234
=22.08 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Western Digital  (NAS:WDC) 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

Western Digital had a gross margin of 22.08% for the quarter that ended in Dec. 2019 => 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.


Western Digital Gross Margin % Related Terms


Western Digital Gross Margin % Headlines

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