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ADI (Analog Devices) Gross Margin % : 56.71% (As of Jul. 2024)


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What is Analog Devices Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Analog Devices's Gross Profit for the three months ended in Jul. 2024 was $1,311 Mil. Analog Devices's Revenue for the three months ended in Jul. 2024 was $2,312 Mil. Therefore, Analog Devices's Gross Margin % for the quarter that ended in Jul. 2024 was 56.71%.

Warning Sign:

Analog Devices Inc gross margin has been in long-term decline. The average rate of decline per year is -1.7%.


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

ADI' s Gross Margin % Range Over the Past 10 Years
Min: 57.85   Med: 64.56   Max: 68.28
Current: 57.85


During the past 13 years, the highest Gross Margin % of Analog Devices was 68.28%. The lowest was 57.85%. And the median was 64.56%.

ADI's Gross Margin % is ranked better than
91.13% of 981 companies
in the Semiconductors industry
Industry Median: 28.28 vs ADI: 57.85

Analog Devices had a gross margin of 56.71% for the quarter that ended in Jul. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Analog Devices was -1.70% per year.


Analog Devices Gross Margin % Historical Data

The historical data trend for Analog Devices'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.

Analog Devices Gross Margin % Chart

Analog Devices Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 67.00 65.87 61.83 62.70 64.01

Analog Devices Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
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 63.76 60.62 58.66 54.66 56.71

Competitive Comparison of Analog Devices's Gross Margin %

For the Semiconductors subindustry, Analog Devices'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.


Analog Devices's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Analog Devices's Gross Margin % distribution charts can be found below:

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



Analog Devices Gross Margin % Calculation

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

Analog Devices's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )=Gross Profit (A: Oct. 2023 ) / Revenue (A: Oct. 2023 )
=7877.2 / 12305.539
=(Revenue - Cost of Goods Sold) / Revenue
=(12305.539 - 4428.321) / 12305.539
=64.01 %

Analog Devices's Gross Margin for the quarter that ended in Jul. 2024 is calculated as


Gross Margin % (Q: Jul. 2024 )=Gross Profit (Q: Jul. 2024 ) / Revenue (Q: Jul. 2024 )
=1311.2 / 2312.209
=(Revenue - Cost of Goods Sold) / Revenue
=(2312.209 - 1000.97) / 2312.209
=56.71 %

* 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.


Analog Devices  (NAS:ADI) 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

Analog Devices had a gross margin of 56.71% for the quarter that ended in Jul. 2024 => Durable 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.


Analog Devices Gross Margin % Related Terms

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


Analog Devices Business Description

Address
One Analog Way, Wilmington, MA, USA, 01887
Analog Devices is a leading analog, mixed signal, and digital signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers, and more than half of its chip sales are made to industrial and automotive end markets. Analog Devices' chips are also incorporated into wireless infrastructure equipment.
Executives
Vincent Roche officer: V.P., WORLDWIDE SALES
Edward H. Frank director C/O FUSION-IO, INC., 2855 E. COTTONWOOD PARKWAY, SUITE 100, SALT LAKE CITY UT 84121
Gregory M Bryant officer: Executive Vice President 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054
James Champy director C/O PEROT SYSTEMS CORP, 2300 WEST PLANO PKWY, PLANO TX 75075
Michael Sondel officer: CAO (principal acct. officer) ONE TECHNOLOGY WAY, NORWOOD MA 02062
Vivek Jain officer: SVP, Global Operations 120 SAN GABRIEL DRIVE, SUNNYVALE CA 94086
James Michael Mollica officer: Interim CFO C/O ANALOG DEVICES, INC., ONE ANALOG WAY, WILMINGTON MA 01887
Prashanth Mahendra-rajah officer: SVP, Finance & CFO C/O WABCO HOLDINGS INC., ONE CENTENNIAL AVENUE, PISCATAWAY NJ 08855
Kenton J Sicchitano director ONE TECHNOLOGY WAY, C/O ANALOG DEVICES, INC., NORWOOD MA 02062
Stephen M Jennings director LTX CORPORATION, UNIVERSITY AVE, WESTWOOD MA 02090
Tunc Doluca director
Ray Stata director, officer: CHAIRMAN
Andre' Andonian director ONE ANALOG WAY, WILMINGTON MA 01887
Bruce R Evans director C/O SUMMIT PARTNERS, 222 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116
Mercedes Johnson director MICRON TECHNOLOGY, INC, 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716