Alchip Technologies (TPE:3661) Gross Margin % : 22.76% (As of Dec. 2023)

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What is Alchip Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Alchip Technologies's Gross Profit for the three months ended in Dec. 2023 was NT$2,100 Mil. Alchip Technologies's Revenue for the three months ended in Dec. 2023 was NT$9,227 Mil. Therefore, Alchip Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 22.76%.

Warning Sign:

Alchip Technologies Ltd gross margin has been in long-term decline. The average rate of decline per year is -8.1%.

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

TPE:3661' s Gross Margin % Range Over the Past 10 Years
Min: 13.22 Med: 30.22 Max: 37.43
Current: 22.29

During the past 13 years, the highest Gross Margin % of Alchip Technologies was 37.43%. The lowest was 13.22%. And the median was 30.22%.

TPE:3661's Gross Margin % is ranked worse than
61.95% of 975 companies
in the Semiconductors industry
Industry Median: 28.41 vs TPE:3661: 22.29

Alchip Technologies had a gross margin of 22.76% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Alchip Technologies was -8.10% per year.

Alchip Technologies Gross Margin % Historical Data

The historical data trend for Alchip Technologies'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.

Alchip Technologies Gross Margin % Chart

Alchip Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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37.19

32.59

34.16

32.27

22.29

Alchip Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															27.50	20.97	21.34	23.70	22.76

Competitive Comparison of Alchip Technologies's Gross Margin %

For the Semiconductors subindustry, Alchip Technologies'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.

Alchip Technologies's Gross Margin % Distribution in the Semiconductors Industry

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

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

Alchip Technologies Gross Margin % Calculation

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

Alchip Technologies'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 )
	=	6794.4	/	30481.576
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(30481.576 - 23687.225)	/	30481.576
	=	22.29 %

Alchip Technologies's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	2100.1	/	9226.676
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9226.676 - 7126.599)	/	9226.676
	=	22.76 %

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.

Alchip Technologies (TPE:3661) 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

Alchip Technologies had a gross margin of 22.76% for the quarter that ended in Dec. 2023 => 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.

Alchip Technologies Gross Margin % Related Terms

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Alchip Technologies (TPE:3661) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Alchip Technologies Ltd (TPE:3661) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Wenhu Street, No.12, 9th floor, Neihu District, Taipei, TWN, 11445

Website

https://www.alchip.com

Alchip Technologies Ltd is engaged in the research and development, design, and manufacture of fabless application-specific integrated circuits (ASIC) and system on a chip (SoC) and the rendering of related services. Its geographical segments are China, Japan, the United States, Europe, Taiwan, and Others, of which majority of its revenue comes from the United States.

Alchip Technologies (TPE:3661) Headlines

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