Unit4 NV (FRA:UNT) Gross Margin % : 92.69% (As of Dec. 2013)

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What is Unit4 NV Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Unit4 NV's Gross Profit for the six months ended in Dec. 2013 was €454.6 Mil. Unit4 NV's Revenue for the six months ended in Dec. 2013 was €490.5 Mil. Therefore, Unit4 NV's Gross Margin % for the quarter that ended in Dec. 2013 was 92.69%.

The historical rank and industry rank for Unit4 NV's Gross Margin % or its related term are showing as below:

FRA:UNT' s Gross Margin % Range Over the Past 10 Years
Min: 62.63 Med: 89.86 Max: 92.69
Current: 92.69

During the past 12 years, the highest Gross Margin % of Unit4 NV was 92.69%. The lowest was 62.63%. And the median was 89.86%.

FRA:UNT's Gross Margin % is not ranked
in the Software industry.
Industry Median: 41.74 vs FRA:UNT: 92.69

Unit4 NV had a gross margin of 92.69% for the quarter that ended in Dec. 2013 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Unit4 NV was 0.50% per year.

Unit4 NV Gross Margin % Historical Data

The historical data trend for Unit4 NV'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.

Unit4 NV Gross Margin % Chart

Unit4 NV Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Gross Margin %

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91.52

91.41

91.52

92.42

92.69

Unit4 NV Semi-Annual Data
	Dec02	Dec03	Dec04	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13
Gross Margin %	Get a 7-Day Free Trial							91.52	91.41	91.52	92.42	92.69

Competitive Comparison of Unit4 NV's Gross Margin %

For the Software - Application subindustry, Unit4 NV'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.

Unit4 NV's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Unit4 NV's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Unit4 NV's Gross Margin % falls into.

Unit4 NV Gross Margin % Calculation

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

Unit4 NV's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin % (A: Dec. 2013 )	=	Gross Profit (A: Dec. 2013 )	/	Revenue (A: Dec. 2013 )
	=	454.6	/	490.487
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(490.487 - 35.865)	/	490.487
	=	92.69 %

Unit4 NV's Gross Margin for the quarter that ended in Dec. 2013 is calculated as

Gross Margin % (Q: Dec. 2013 )	=	Gross Profit (Q: Dec. 2013 )	/	Revenue (Q: Dec. 2013 )
	=	454.6	/	490.487
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(490.487 - 35.865)	/	490.487
	=	92.69 %

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.

Unit4 NV (FRA:UNT) 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

Unit4 NV had a gross margin of 92.69% for the quarter that ended in Dec. 2013 => 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.

Unit4 NV Gross Margin % Related Terms

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Unit4 NV (FRA:UNT) Business Description

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Address

Website

http://www.unit4.com

Unit4 NV was founded on 1980. The Company is a cloud business software and services company that helps dynamic public sector and commercial services organizations to embrace change simply, quickly and cost effectively in a market sector that call 'Businesses Living IN Change' (BLINC). The Group incorporates a number of change embracing software brands, including UNIT4 Agresso, our flagship ERP suite for mid-sized services intensive organizations. The Company's UNIT4 Coda, best-of-class financial management software; and FinancialForce.com, the cloud enterprise applications company formed with investment from salesforce.com. Its software products and services are designed to meet the needs of an ever changing business. The Company has about 300 customers with about 80,000 active users and local installations in around 20 countries.

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