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Hiwin Mikrosystem (TPE:4576) Gross Margin % : 24.87% (As of Mar. 2024)


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What is Hiwin Mikrosystem Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hiwin Mikrosystem's Gross Profit for the three months ended in Mar. 2024 was NT$113 Mil. Hiwin Mikrosystem's Revenue for the three months ended in Mar. 2024 was NT$454 Mil. Therefore, Hiwin Mikrosystem's Gross Margin % for the quarter that ended in Mar. 2024 was 24.87%.

Warning Sign:

Hiwin Mikrosystem Corp gross margin has been in long-term decline. The average rate of decline per year is -2.2%.


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

TPE:4576' s Gross Margin % Range Over the Past 10 Years
Min: 30.8   Med: 34.58   Max: 37.95
Current: 30.8


During the past 9 years, the highest Gross Margin % of Hiwin Mikrosystem was 37.95%. The lowest was 30.80%. And the median was 34.58%.

TPE:4576's Gross Margin % is ranked better than
61.74% of 2938 companies
in the Industrial Products industry
Industry Median: 26.39 vs TPE:4576: 30.80

Hiwin Mikrosystem had a gross margin of 24.87% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Hiwin Mikrosystem was -2.20% per year.


Hiwin Mikrosystem Gross Margin % Historical Data

The historical data trend for Hiwin Mikrosystem'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.

Hiwin Mikrosystem Gross Margin % Chart

Hiwin Mikrosystem Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 31.82 34.25 34.11 34.58 30.80

Hiwin Mikrosystem Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 29.70 28.21 32.31 33.17 24.87

Competitive Comparison of Hiwin Mikrosystem's Gross Margin %

For the Electrical Equipment & Parts subindustry, Hiwin Mikrosystem'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.


Hiwin Mikrosystem's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hiwin Mikrosystem's Gross Margin % distribution charts can be found below:

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



Hiwin Mikrosystem Gross Margin % Calculation

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

Hiwin Mikrosystem'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 )
=668.4 / 2170.2
=(Revenue - Cost of Goods Sold) / Revenue
=(2170.2 - 1501.768) / 2170.2
=30.80 %

Hiwin Mikrosystem's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=112.9 / 453.943
=(Revenue - Cost of Goods Sold) / Revenue
=(453.943 - 341.051) / 453.943
=24.87 %

* 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.


Hiwin Mikrosystem  (TPE:4576) 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

Hiwin Mikrosystem had a gross margin of 24.87% for the quarter that ended in Mar. 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.


Hiwin Mikrosystem Gross Margin % Related Terms

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Hiwin Mikrosystem (TPE:4576) Business Description

Traded in Other Exchanges
N/A
Address
No.6, Jingke Central Road, Chuen She Village, Nantun District, Taichung, TWN
Hiwin Mikrosystem Corp is engaged in manufactures, repairs and sells a variety of motors, drives and automation systems. Its product offerings include ballscrews, rolled ballscrews, precision linear guideways, rotary motor, single axis motor, among other. Its products can be applied in semiconductor equipment, optical component manufacturing equipment, automation equipment, Medicare and healthcare equipment, rehabilitation equipment, and transportation.

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