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Qualcomm Operating Margin %

: 27.23% (As of Jun. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Qualcomm's Operating Income for the three months ended in Jun. 2021 was $2,195 Mil. Qualcomm's Revenue for the three months ended in Jun. 2021 was $8,060 Mil. Therefore, Qualcomm's Operating Margin % for the quarter that ended in Jun. 2021 was 27.23%.

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

NAS:QCOM' s Operating Margin % Range Over the Past 10 Years
Min: 2.75   Med: 28.04   Max: 33.6
Current: 31.74

2.75
33.6

NAS:QCOM's Operating Margin % is ranked higher than
97% of the 214 Companies
in the Semiconductors industry.

( Industry Median: -1.17 vs. NAS:QCOM: 31.74 )

Qualcomm's 5-Year Average Operating Margin % Growth Rate was -0.80% per year.

Qualcomm's Operating Income for the three months ended in Jun. 2021 was $2,195 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2021 was $10,339 Mil.


Qualcomm Operating Margin % Historical Data

The historical data trend for Qualcomm's Operating 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.

Qualcomm Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.57 11.60 2.75 31.59 26.58

Qualcomm Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Operating 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 15.98 41.36 30.67 27.30 27.23

Competitive Comparison

For the Semiconductors subindustry, Qualcomm's Operating Margin %, along with its competitors' market caps and Operating 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.

   

Qualcomm Operating Margin % Distribution

For the Semiconductors industry and Technology sector, Qualcomm's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Qualcomm's Operating Margin % falls into.



Qualcomm Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Qualcomm's Operating Margin % for the fiscal year that ended in Sep. 2020 is calculated as

Operating Margin %=Operating Income (A: Sep. 2020 ) / Revenue (A: Sep. 2020 )
=6255 / 23531
=26.58 %

Qualcomm's Operating Margin % for the quarter that ended in Jun. 2021 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=2195 / 8060
=27.23 %

* 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.


Qualcomm  (NAS:QCOM) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Qualcomm Operating Margin % Related Terms

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


Qualcomm Business Description

Qualcomm logo
Industry
Technology » Semiconductors NAICS : 334118 SIC : 3577
Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and also designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. The firm is a leader in 5G network technology as well. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors.
Executives
Amon Cristiano R officer: President 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Rosenberg Donald J officer: EVP & General Counsel QUALCOMM INCORPORATED 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Rogers Alexander H officer: EVP & President, QTL 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Modoff Brian officer: EVP, Strategy and M&A 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Thompson James H officer: EVP, Engineering & CTO 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Mollenkopf Steven M director, officer: Chief Executive Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Mclaughlin Mark D director C/O PALO ALTO NETWORKS, INC. 4401 GREAT AMERICA PKWY SANTA CLARA CA 95054
Miller Jamie S director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Fields Mark director FORD MOTOR COMPANY ONE AMERICAN ROAD DEARBORN MI 48126
Smit Neil director C/O AMERICA ONLINE LATIN AMERICA, INC. 6600 N. ANDREWS AVE., SUITE 400 FT. LAUDERDALE FL 33309
Palkhiwala Akash J. officer: EVP & Chief Financial Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Polek Erin L officer: SVP & Chief Accounting Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Tricoire Jean-pascal director 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Ace Heather S officer: EVP, Human Resources 3721 VALLEY CENTRE DR SUITE 500 SAN DIEGO CA 92130
Rosenfeld Irene B director 110 SE 6TH STREET 20TH FLOOR FORT LAUDERDALE FL 33301

Qualcomm Headlines

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