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NTGR (Netgear) Gross Margin % : 22.11% (As of Jun. 2024)


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What is Netgear Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Netgear's Gross Profit for the three months ended in Jun. 2024 was $31.8 Mil. Netgear's Revenue for the three months ended in Jun. 2024 was $143.9 Mil. Therefore, Netgear's Gross Margin % for the quarter that ended in Jun. 2024 was 22.11%.


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

NTGR' s Gross Margin % Range Over the Past 10 Years
Min: 26.87   Med: 29.63   Max: 33.64
Current: 30.88


During the past 13 years, the highest Gross Margin % of Netgear was 33.64%. The lowest was 26.87%. And the median was 29.63%.

NTGR's Gross Margin % is ranked better than
62.96% of 2422 companies
in the Hardware industry
Industry Median: 24.725 vs NTGR: 30.88

Netgear had a gross margin of 22.11% for the quarter that ended in Jun. 2024 => Competition eroding margins

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


Netgear Gross Margin % Historical Data

The historical data trend for Netgear'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.

Netgear Gross Margin % Chart

Netgear Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.46 29.65 31.32 26.87 33.64

Netgear Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 31.31 34.84 34.79 29.31 22.11

Competitive Comparison of Netgear's Gross Margin %

For the Communication Equipment subindustry, Netgear'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.


Netgear's Gross Margin % Distribution in the Hardware Industry

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

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



Netgear Gross Margin % Calculation

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

Netgear's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=249.3 / 740.84
=(Revenue - Cost of Goods Sold) / Revenue
=(740.84 - 491.588) / 740.84
=33.64 %

Netgear's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=31.8 / 143.9
=(Revenue - Cost of Goods Sold) / Revenue
=(143.9 - 112.077) / 143.9
=22.11 %

* 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.


Netgear  (NAS:NTGR) 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

Netgear had a gross margin of 22.11% for the quarter that ended in Jun. 2024 => 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.


Netgear Gross Margin % Related Terms

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


Netgear Business Description

Traded in Other Exchanges
Address
350 East Plumeria Drive, San Jose, CA, USA, 95134
Netgear Inc is a provider of networking solutions. The reportable segments of the company are connected home, and Small and Medium Businesses (SMB). The Connected Home segment focuses on consumers and consists of high-performance, dependable, and easy-to-use 4G/5G mobile, Wi-Fi internet networking solutions, and smart devices such as Orbi Voice smart speakers and Meural digital canvas; and NETGEAR specializes in providing networking solutions for businesses, including wireless LAN, Pro AV applications for audio and video over Ethernet, security, and remote management.
Executives
Thomas H Waechter director
Shravan Goli director 1040 AVENUE OF THE AMERICAS, NEW YORK NY 10016
Sarah Butterfass director 350 E. PLUMERIA DR., SAN JOSE CA 95134
Heidi Cormack officer: SVP, Marketing 350 E. PLUMERIA DR., SAN JOSE CA 95134
Martin Westhead officer: CTO 350 E. PLUMERIA DR., SAN JOSE CA 95134
Michael A Werdann officer: SVP of Worldwide Sales 4500 GREAT AMERICAN PARKWAY, C/O NETGEAR INC, SANTA CLARA CA 95054
Andrew Wonki Kim officer: SVP, Legal and Corp. Dev. 892 RUSSET DR., SUNNYVALE CA 94087
Vikram Mehta officer: SVP, CBU 350 E. PLUMERIA DR., SAN JOSE CA 95134
Laura Durr director C/O XPERI HOLDING CORPORATION, 3025 ORCHARD PARKWAY, SAN JOSE CA 95134
Mark G Merrill officer: Chief Technology Officer
Patrick Cs Lo director, officer: Chairman and CEO
David John Henry officer: SVP, Home Networking 350 E. PLUMERIA DR., SAN JOSE CA 95134
Michael F Falcon officer: SVP, Operations
Tamesa Rogers officer: SVP, Human Resources 350 EAST PLUMERIA DR, SAN JOSE CA 95134
Murray Bryan officer: CFO 350 E. PLUMERIA DR., SAN JOSE CA 95134