Gross Margin % is calculated as gross profit divided by its revenue. ICO Group's Gross Profit for the
six
months ended in Sep. 2023 was HK$94.7 Mil. ICO Group's Revenue for the
six
months ended in Sep. 2023 was HK$517.5 Mil. Therefore, ICO Group's Gross Margin % for the quarter that ended in Sep. 2023 was 18.29%.
The historical rank and industry rank for ICO Group's Gross Margin % or its related term are showing as below:
HKSE:01460'
s Gross Margin % Range Over the Past 10 Years
Min: 11.88 Med: 18.46 Max: 20.54
Current: 18.67
During the past 10 years, the highestGross Margin % of ICO Group was 20.54%. The lowest was 11.88%. And the median was 18.46%.
HKSE:01460's Gross Margin % is ranked worse than 83.73% of 2636
companies
in the Software industry
Industry Median: 41.84
vs HKSE:01460: 18.67
ICO Group had a gross margin of 18.29% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ICO Group was 8.30% per year.
ICO Group Gross Margin % Historical Data
The historical data trend for ICO Group'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.
Competitive Comparison of ICO Group's Gross Margin %
For the Information Technology Services subindustry, ICO Group'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.
ICO Group's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, ICO Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ICO Group's Gross Margin % falls into.
* 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.
ICO Group (HKSE:01460) 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
ICO Group had a gross margin of 18.29% for the quarter that ended in Sep. 2023 => No sustainable 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.
ICO Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of ICO Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ICO Group Ltd along with its subsidiaries is engaged in the provision of Information technology(IT) solutions and services. The business activity of the group is functioned through IT application and solution development; IT infrastructure solutions; IT secondment services; Maintenance and support services, and Property leasing and e-commerce business segment. The company drives a majority of the revenue from The IT Infrastructure solutions segment which is engaged in the provision of IT infrastructure solutions and sale of IT infrastructure solution related hardware and software. Geographically, the activities are carried out in Hong Kong and the PRC, of which maximum revenue is generated from Hong Kong.
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