Intellinetics Inc gross margin has been in long-term decline. The average rate of decline per year is -3%.
The historical rank and industry rank for Intellinetics's Gross Margin % or its related term are showing as below:
INLX'
s Gross Margin % Range Over the Past 10 Years
Min: 60.47 Med: 69.92 Max: 79.74
Current: 62.56
During the past 13 years, the highestGross Margin % of Intellinetics was 79.74%. The lowest was 60.47%. And the median was 69.92%.
INLX's Gross Margin % is ranked better than 70.73% of 2631
companies
in the Software industry
Industry Median: 41.74
vs INLX: 62.56
Intellinetics had a gross margin of 64.92% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Intellinetics was -3.00% per year.
Intellinetics Gross Margin % Historical Data
The historical data trend for Intellinetics'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 Intellinetics's Gross Margin %
For the Software - Application subindustry, Intellinetics'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.
Intellinetics's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Intellinetics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Intellinetics'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.
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
Intellinetics had a gross margin of 64.92% for the quarter that ended in Dec. 2023 => 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.
Intellinetics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Intellinetics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Intellinetics (Intellinetics) Business Description
Intellinetics Inc is a document service and solutions software company serving both the small-to-medium business and governmental sectors. The company's digital transformation products and services are provided through two reporting segments: Document Management and Document Conversion. The Document Management segment consists primarily of solutions involving software platforms, which allow customers to capture and manage all documents across operations such as scanned hard-copy documents and all digital documents including those from Microsoft Office 365, digital images, audio, video, and emails. The company's Document Conversion offerings aid clients as a part of their overall document strategy to convert documents from one medium to another.
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