Quantum Thinking (HKSE:08050) Gross Margin % : 5.21% (As of Sep. 2023)

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What is Quantum Thinking Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Quantum Thinking's Gross Profit for the three months ended in Sep. 2023 was HK$0.26 Mil. Quantum Thinking's Revenue for the three months ended in Sep. 2023 was HK$5.05 Mil. Therefore, Quantum Thinking's Gross Margin % for the quarter that ended in Sep. 2023 was 5.21%.

Warning Sign:

Quantum Thinking Ltd gross margin has been in long-term decline. The average rate of decline per year is -23.3%.

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

HKSE:08050' s Gross Margin % Range Over the Past 10 Years
Min: 5.45 Med: 16.3 Max: 38.42
Current: 5.45

During the past 13 years, the highest Gross Margin % of Quantum Thinking was 38.42%. The lowest was 5.45%. And the median was 16.30%.

HKSE:08050's Gross Margin % is ranked worse than
94.69% of 2636 companies
in the Software industry
Industry Median: 41.84 vs HKSE:08050: 5.45

Quantum Thinking had a gross margin of 5.21% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Quantum Thinking was -23.30% per year.

Quantum Thinking Gross Margin % Historical Data

The historical data trend for Quantum Thinking'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.

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Quantum Thinking Gross Margin % Chart

Quantum Thinking Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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30.87

5.91

8.33

11.83

9.95

Quantum Thinking Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															16.26	6.23	-0.59	12.01	5.21

Competitive Comparison of Quantum Thinking's Gross Margin %

For the Information Technology Services subindustry, Quantum Thinking'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.

Quantum Thinking's Gross Margin % Distribution in the Software Industry

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

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

Quantum Thinking Gross Margin % Calculation

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

Quantum Thinking's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	1.8	/	18.29
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(18.29 - 16.47)	/	18.29
	=	9.95 %

Quantum Thinking's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	0.3	/	5.05
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5.05 - 4.787)	/	5.05
	=	5.21 %

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.

Quantum Thinking (HKSE:08050) 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

Quantum Thinking had a gross margin of 5.21% 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.

Quantum Thinking Gross Margin % Related Terms

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Quantum Thinking (HKSE:08050) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Quantum Thinking Ltd (HKSE:08050) » Definitions » Gross Margin %

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Address

151 Gloucester Road, Room 1403, 13th Floor, Capital Centre, Wanchai, Hong Kong, HKG

Website

http://www.8050hk.com

Quantum Thinking Ltd is a Hong Kong-based investment holding company principally engaged in the hardware-related business. The Company also engaged in the provision of system integration services and other value-added technical consultation services and hardware-related business. It is engaged in the segments of Sales of hardware products and Services segment which involves system development, consultancy, maintenance and other services. The group's operations are mainly located in the PRC.

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