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DAVA (Endava) Gross Margin % : 22.21% (As of Jun. 2024)


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What is Endava Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Endava's Gross Profit for the three months ended in Jun. 2024 was $54.9 Mil. Endava's Revenue for the three months ended in Jun. 2024 was $247.4 Mil. Therefore, Endava's Gross Margin % for the quarter that ended in Jun. 2024 was 22.21%.

Warning Sign:

Endava PLC gross margin has been in long-term decline. The average rate of decline per year is -3.7%.


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

DAVA' s Gross Margin % Range Over the Past 10 Years
Min: 24.23   Med: 33.23   Max: 34.99
Current: 24.23


During the past 9 years, the highest Gross Margin % of Endava was 34.99%. The lowest was 24.23%. And the median was 33.23%.

DAVA's Gross Margin % is ranked worse than
74.24% of 2628 companies
in the Software industry
Industry Median: 41.375 vs DAVA: 24.23

Endava had a gross margin of 22.21% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Endava was -3.70% per year.


Endava Gross Margin % Historical Data

The historical data trend for Endava'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.

Endava Gross Margin % Chart

Endava Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 28.61 34.55 33.28 33.23 24.26

Endava 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 31.36 28.91 24.45 21.33 22.21

Competitive Comparison of Endava's Gross Margin %

For the Software - Infrastructure subindustry, Endava'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.


Endava's Gross Margin % Distribution in the Software Industry

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

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



Endava Gross Margin % Calculation

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

Endava's Gross Margin for the fiscal year that ended in Jun. 2024 is calculated as

Gross Margin % (A: Jun. 2024 )=Gross Profit (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=228.6 / 942.438
=(Revenue - Cost of Goods Sold) / Revenue
=(942.438 - 713.802) / 942.438
=24.26 %

Endava'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 )
=54.9 / 247.351
=(Revenue - Cost of Goods Sold) / Revenue
=(247.351 - 192.425) / 247.351
=22.21 %

* 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.


Endava  (NYSE:DAVA) 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

Endava had a gross margin of 22.21% 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.


Endava Gross Margin % Related Terms

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Endava Business Description

Traded in Other Exchanges
Address
125 Old Broad Street, London, GBR, EC2N 1AR
Endava PLC is a next-generation IT services company that primarily assists clients with their digital transformation efforts by creating customized software for them. The company was founded in 2006 in the U.K. and it continues to generate the majority of revenue in the U.K. and Europe. Endava's client base is concentrated in the payments and financial services, technology, media, and telecom industries.