National Instruments (National Instruments) Gross Margin % : 71.57% (As of Jun. 2023)

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What is National Instruments Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. National Instruments's Gross Profit for the three months ended in Jun. 2023 was $298 Mil. National Instruments's Revenue for the three months ended in Jun. 2023 was $417 Mil. Therefore, National Instruments's Gross Margin % for the quarter that ended in Jun. 2023 was 71.57%.

Warning Sign:

National Instruments Corp gross margin has been in long-term decline. The average rate of decline per year is -2%.

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

NATI' s Gross Margin % Range Over the Past 10 Years
Min: 67.73 Med: 74.28 Max: 75.45
Current: 68.83

During the past 13 years, the highest Gross Margin % of National Instruments was 75.45%. The lowest was 67.73%. And the median was 74.28%.

NATI's Gross Margin % is not ranked
in the Software industry.
Industry Median: 41.74 vs NATI: 68.83

National Instruments had a gross margin of 71.57% for the quarter that ended in Jun. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for National Instruments was -2.00% per year.

National Instruments Gross Margin % Historical Data

The historical data trend for National Instruments'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.

National Instruments Gross Margin % Chart

National Instruments Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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75.45

75.10

71.16

71.36

67.73

National Instruments Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Gross Margin %	Get a 7-Day Free Trial															67.77	66.42	67.81	69.62	71.57

Competitive Comparison of National Instruments's Gross Margin %

For the Software - Application subindustry, National Instruments'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.

National Instruments's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, National Instruments's Gross Margin % distribution charts can be found below:

* The bar in red indicates where National Instruments's Gross Margin % falls into.

National Instruments Gross Margin % Calculation

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

National Instruments's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	1122.3	/	1656.975
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1656.975 - 534.724)	/	1656.975
	=	67.73 %

National Instruments'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 )
	=	298.3	/	416.804
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(416.804 - 118.487)	/	416.804
	=	71.57 %

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.

National Instruments (NAS:NATI) 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

National Instruments had a gross margin of 71.57% for the quarter that ended in Jun. 2023 => 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.

National Instruments Gross Margin % Related Terms

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

National Instruments (National Instruments) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » National Instruments Corp (NAS:NATI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

11500 North MoPac Expressway, Austin, TX, USA, 78759

Website

https://www.ni.com

National Instruments provides testing and measurement equipment and integrated, software-led solutions to serve high-complexity automated testing in late product development. NI serves a long tail of more than 30,000 customers in myriad end markets but focuses on the semiconductor, transportation, and aerospace and defense verticals.

Executives

Ritu Favre	officer: Executive Vice President	12367 CROSTHWAITE CIRCLE, POWAY CA 92064
Scott Arthur Rust	officer: Executive Vice President	C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759
Alexander M Davern	officer: Senior Vice President and CFO	C/O NATIONAL INSTRUMENTS, 11500 MOPAC BLDG C, AUSTIN TX 78759
Thomas Benjamin	officer: Executive Vice President	C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC EXPRESSWAY, AUSTIN TX 78759
Eric Howard Starkloff	director, officer: President & CEO	11500 NORTH MOPAC, BUILDING C, AUSTIN TX 78759
Daniel Berenbaum	officer: Chief Financial Officer, EVP	C/O EVERSPIN TECHNOLOGIES, INC., 5670 W. CHANDLER BLVD., SUITE 100, CHANDLER AZ 85226
Cashman James E Iii	director	2600 ANSYS DRIVE, CANONSBURG PA 15317
Gerhard Paul Fettweis	director	C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759
Michael E Mcgrath	director	11701 LUNA ROAD, DALLAS TX 75234
Liam Griffin	director	5260 CALIFORNIA AVENUE, IRVINE CA 92617
Gayla J Delly	director	3000 TECHNOLOGY DR, ANGLETON TX 77515
Jason Elliot Green	officer: Chief Revenue Officer & EVP	C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759
Karen Marie Rapp	officer: Chief Financial Officer & EVP	C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759
Carla Pineyro Sublett	officer: Chief Marketing Officer	C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759
Jeffrey L Kodosky	director	C/O NATIONAL INSTRUMENTS CORP, 11500 N. MOPAC EXPRESSWAY, AUSTIN TX 78759