Molex, (LSE:MOLA) Gross Margin % : 32.31% (As of Sep. 2013)

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What is Molex, Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Molex,'s Gross Profit for the three months ended in Sep. 2013 was $303 Mil. Molex,'s Revenue for the three months ended in Sep. 2013 was $936 Mil. Therefore, Molex,'s Gross Margin % for the quarter that ended in Sep. 2013 was 32.31%.

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

LSE:MOLA's Gross Margin % is not ranked ^*
in the Hardware industry.
Industry Median: 24.38
* Ranked among companies with meaningful Gross Margin % only.

Molex, had a gross margin of 32.31% for the quarter that ended in Sep. 2013 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Molex, was 0.00% per year.

Molex, Gross Margin % Historical Data

The historical data trend for Molex,'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.

Molex, Gross Margin % Chart

Molex, Annual Data

Trend

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Gross Margin %

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25.42

29.68

30.33

30.62

29.36

Molex, Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
Gross Margin %	Get a 7-Day Free Trial															29.27	29.88	29.14	29.11	32.31

Competitive Comparison of Molex,'s Gross Margin %

For the Electronic Components subindustry, Molex,'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.

Molex,'s Gross Margin % Distribution in the Hardware Industry

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

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

Molex, Gross Margin % Calculation

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

Molex,'s Gross Margin for the fiscal year that ended in Jun. 2013 is calculated as

Gross Margin % (A: Jun. 2013 )	=	Gross Profit (A: Jun. 2013 )	/	Revenue (A: Jun. 2013 )
	=	1063.1	/	3620.447
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3620.447 - 2557.333)	/	3620.447
	=	29.36 %

Molex,'s Gross Margin for the quarter that ended in Sep. 2013 is calculated as

Gross Margin % (Q: Sep. 2013 )	=	Gross Profit (Q: Sep. 2013 )	/	Revenue (Q: Sep. 2013 )
	=	302.6	/	936.367
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(936.367 - 633.816)	/	936.367
	=	32.31 %

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.

Molex, (LSE:MOLA) 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

Molex, had a gross margin of 32.31% for the quarter that ended in Sep. 2013 => 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.

Molex, Gross Margin % Related Terms

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Molex, (LSE:MOLA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Molex, Inc. (LSE:MOLA) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

Website

http://www.molex.com

Molex, Inc. was incorporated in the state of Delaware in 1972 and originated from an enterprise established in 1938. The Company designs, manufactures and sells terminals, connectors, cable assemblies, interconnection systems, sockets, antennas, integrated products and switches. As of June 30, 2013, it operated 41 manufacturing locations in 15 countries. The Company's competitors include Amphenol Corporation, Delphi Automotive PLC, Hirose Electronic Co., Ltd., Hon Hai Precision Industry Co., Ltd., Japan Aviation Electronics Industry, Ltd., Japan Solderless Terminal Ltd. and TE Connectivity Ltd. The principal raw materials that we purchase for the manufacture of our products include plastic resins for molding, metal alloys (primarily copper based) for stamping and gold and palladium salts for use in the plating process.

Molex, (LSE:MOLA) Headlines

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