GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Altera Corp (FRA:ALR) » Definitions » Gross Margin %

Altera (FRA:ALR) Gross Margin % : 66.55% (As of Sep. 2015)


View and export this data going back to . Start your Free Trial

What is Altera Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Altera's Gross Profit for the three months ended in Sep. 2015 was €237 Mil. Altera's Revenue for the three months ended in Sep. 2015 was €356 Mil. Therefore, Altera's Gross Margin % for the quarter that ended in Sep. 2015 was 66.55%.


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

FRA:ALR' s Gross Margin % Range Over the Past 10 Years
Min: 64.55   Med: 67.27   Max: 70.99
Current: 66.18


During the past 13 years, the highest Gross Margin % of Altera was 70.99%. The lowest was 64.55%. And the median was 67.27%.

FRA:ALR's Gross Margin % is not ranked
in the Semiconductors industry.
Industry Median: 28.265 vs FRA:ALR: 66.18

Altera had a gross margin of 66.55% for the quarter that ended in Sep. 2015 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Altera was -0.40% per year.


Altera Gross Margin % Historical Data

The historical data trend for Altera'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.

Altera Gross Margin % Chart

Altera Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 70.99 70.44 69.63 68.44 66.44

Altera Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 66.77 64.96 64.12 69.43 66.55

Competitive Comparison of Altera's Gross Margin %

For the Semiconductors subindustry, Altera'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.


Altera's Gross Margin % Distribution in the Semiconductors Industry

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

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



Altera Gross Margin % Calculation

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

Altera's Gross Margin for the fiscal year that ended in Dec. 2014 is calculated as

Gross Margin % (A: Dec. 2014 )=Gross Profit (A: Dec. 2014 ) / Revenue (A: Dec. 2014 )
=1041 / 1566.924
=(Revenue - Cost of Goods Sold) / Revenue
=(1566.924 - 525.894) / 1566.924
=66.44 %

Altera's Gross Margin for the quarter that ended in Sep. 2015 is calculated as


Gross Margin % (Q: Sep. 2015 )=Gross Profit (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=236.9 / 356.014
=(Revenue - Cost of Goods Sold) / Revenue
=(356.014 - 119.097) / 356.014
=66.55 %

* 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.


Altera  (FRA:ALR) 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

Altera had a gross margin of 66.55% for the quarter that ended in Sep. 2015 => 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.


Altera Gross Margin % Related Terms

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


Altera (FRA:ALR) Business Description

Traded in Other Exchanges
N/A
Address
Altera Corp was founded in 1983 and reincorporated in the State of Delaware in 1997. It designs and sells programmable logic devices, HardCopy application-specific integrated circuit devices, power system-on-chip devices, pre-defined design building blocks known as intellectual property cores, and associated development tools. Its PLDs, which consist of field-programmable gate arrays, including those referred to as systems-on-chip FPGAs which incorporate hard embedded processor cores, and complex programmable logic devices. FPGAs and CPLDs are standard semiconductor integrated circuits that are manufactured as standard chips that its customers program to perform desired logic and processing functions within their electronic systems. With its HardCopy devices it offers its customers a migration path from a PLD to a low-cost, high-volume, non-programmable implementation of their designs. Its customers can license IP cores for implementation of standard functions in their PLD designs. Customers develop, compile, and verify their PLD designs, and then program their designs into its PLDs using its proprietary development software, which operates on personal computers and engineering workstations. Its products serve a range of customers within the Telecom and Wireless, Industrial Automation, Military and Automotive, Networking, Computer and Storage and Other vertical markets. Its geographical segments include US, Japan, China, Europe and Other. Its customers design electronic systems that typically use three types of digital integrated circuits: Processors, which include microprocessors, microcontrollers, graphics processors, and digital signal processors, control central computing tasks and signal processing; Memory stores programming instructions and data; and Logic manages the interchange and manipulation of digital signals within a system. It classifies its products into three categories: New, Mainstream, and Mature and Other Products. New Products include the Stratix V, Stratix IV, Arria 10, Arria V, Arria II, Cyclone V, Cyclone IV, MAX 10 FPGAs, MAX V CPLDs, HardCopy IV devices and Enpirion PowerSoCs. Mainstream Products include the Stratix III, Cyclone III, MAX II and HardCopy III devices. Mature and Other Products include the Stratix II, Stratix, Arria GX, Cyclone II, Cyclone, Classic, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEXseries, APEX series, Mercury, Excalibur devices, configuration and other devices, intellectual property cores, and software and other tools. The Company competes with PLD vendors such as Lattice Semiconductor Corporation, Microsemi Corporation, and Xilinx Inc. Other semiconductor companies with whom it may compete includes Analog Devices Inc., Atmel Corporation, Avago Technologies, Broadcom Corporation, Cavium, Inc., Freescale Semiconductor Inc., GlobalFoundries Inc., HiSilicon Technologies Company, Intel Corporation ("Intel"), Linear Technology Corporation

Altera (FRA:ALR) Headlines

From GuruFocus

AlerisLife Announces Leadership Transition and Business Update

By Business Wire Business Wire 05-02-2022