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TEL (TE Connectivity) Gross Margin % : 34.00% (As of Sep. 2024)


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What is TE Connectivity Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. TE Connectivity's Gross Profit for the three months ended in Sep. 2024 was $1,383 Mil. TE Connectivity's Revenue for the three months ended in Sep. 2024 was $4,068 Mil. Therefore, TE Connectivity's Gross Margin % for the quarter that ended in Sep. 2024 was 34.00%.


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

TEL' s Gross Margin % Range Over the Past 10 Years
Min: 30.69   Med: 32.96   Max: 34.33
Current: 33.89


During the past 13 years, the highest Gross Margin % of TE Connectivity was 34.33%. The lowest was 30.69%. And the median was 32.96%.

TEL's Gross Margin % is ranked better than
68.13% of 2422 companies
in the Hardware industry
Industry Median: 24.725 vs TEL: 33.89

TE Connectivity had a gross margin of 34.00% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for TE Connectivity was -1.00% per year.


TE Connectivity Gross Margin % Historical Data

The historical data trend for TE Connectivity'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.

TE Connectivity Gross Margin % Chart

TE Connectivity Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.69 32.75 32.21 31.53 34.43

TE Connectivity Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 31.85 34.56 34.36 34.83 34.00

Competitive Comparison of TE Connectivity's Gross Margin %

For the Electronic Components subindustry, TE Connectivity'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.


TE Connectivity's Gross Margin % Distribution in the Hardware Industry

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

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



TE Connectivity Gross Margin % Calculation

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

TE Connectivity's Gross Margin for the fiscal year that ended in Sep. 2024 is calculated as

Gross Margin % (A: Sep. 2024 )=Gross Profit (A: Sep. 2024 ) / Revenue (A: Sep. 2024 )
=5456 / 15845
=(Revenue - Cost of Goods Sold) / Revenue
=(15845 - 10389) / 15845
=34.43 %

TE Connectivity's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=1383 / 4068
=(Revenue - Cost of Goods Sold) / Revenue
=(4068 - 2685) / 4068
=34.00 %

* 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.


TE Connectivity  (NYSE:TEL) 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

TE Connectivity had a gross margin of 34.00% for the quarter that ended in Sep. 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.


TE Connectivity Gross Margin % Related Terms

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


TE Connectivity Business Description

Traded in Other Exchanges
Address
Muhlenstrasse 26, Schaffhausen, CHE, CH-8200
TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.
Executives
Shadrak W Kroeger officer: Pres., Communications Solution 1050 WESTLAKES DRIVE, BERWYN PA 19312
John S Jenkins officer: EVP & General Counsel 1050 WESTLAKES DRIVE, BERWYN PA 19312
Robert J Ott officer: Sr VP & Controller C/O TYCO ELECTRONICS LTD, 1050 WESTLAKES DRIVE, BERWYN PA 19312
Heath A Mitts officer: EVP & Chief Financial Officer 1925 WEST FIELD COURT, SUITE 200, LAKE FOREST IL 60045
Terrence R Curtin director, officer: EVP & Chief Financial Officer C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312
Aaron Kyle Stucki officer: Pres. Communications Solutions 1050 WESTLAKES DRIVE, BERWYN PA 19312
Mark Trudeau director COVIDIEN PLC, 15 HAMPSHIRE STREET, MANSFIELD MA 02048
Steven T Merkt officer: President, Transportation Sol. 1050 WESTLAKES DRIVE, BERWYN PA 19312
Malavika Sagar officer: SVP, Chief Human Resources Off 1050 WESTLAKES DRIVE, BERWYN PA 19312
Jean-pierre Clamadieu director 1050 WESTLAKES DRIVE, BERWYN PA 19312
Abhijit Y Talwalkar director ONE AMD PLACE, PO BOX 3453, SUNNYVALE CA 94088
Tim Murphy officer: SVP & CHRO 1050 WESTLAKES DRIVE, BERWYN PA 19312
Thomas J Lynch director, officer: Chief Executive Officer 7 LAKEVIEW DRIVE, NEWTOWN PA 19840
Syaru Shirley Lin director
Daniel J Phelan director C/O TYCO ELECTRONICS LTD., 1050 WESTLAKES DRIVE, BERWYN PA 19312