Cerillion (LSE:CER) Gross Margin % : 80.37% (As of Mar. 2024)

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What is Cerillion Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cerillion's Gross Profit for the six months ended in Mar. 2024 was £18.10 Mil. Cerillion's Revenue for the six months ended in Mar. 2024 was £22.52 Mil. Therefore, Cerillion's Gross Margin % for the quarter that ended in Mar. 2024 was 80.37%.

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

LSE:CER' s Gross Margin % Range Over the Past 10 Years
Min: 72.48 Med: 75.58 Max: 78.65
Current: 78.16

During the past 12 years, the highest Gross Margin % of Cerillion was 78.65%. The lowest was 72.48%. And the median was 75.58%.

LSE:CER's Gross Margin % is ranked better than
85.62% of 2635 companies
in the Software industry
Industry Median: 41.74 vs LSE:CER: 78.16

Cerillion had a gross margin of 80.37% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cerillion was 1.70% per year.

Cerillion Gross Margin % Historical Data

The historical data trend for Cerillion'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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Cerillion Gross Margin % Chart

Cerillion Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Gross Margin %

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74.94

73.74

78.28

77.93

78.65

Cerillion Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Gross Margin %	Get a 7-Day Free Trial															78.46	77.42	81.51	75.50	80.37

Competitive Comparison of Cerillion's Gross Margin %

For the Software - Application subindustry, Cerillion'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.

Cerillion's Gross Margin % Distribution in the Software Industry

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

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

Cerillion Gross Margin % Calculation

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

Cerillion's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )	=	Gross Profit (A: Sep. 2023 )	/	Revenue (A: Sep. 2023 )
	=	30.8	/	39.17
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(39.17 - 8.364)	/	39.17
	=	78.65 %

Cerillion's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	18.1	/	22.516
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(22.516 - 4.421)	/	22.516
	=	80.37 %

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.

Cerillion (LSE:CER) 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

Cerillion had a gross margin of 80.37% for the quarter that ended in Mar. 2024 => 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.

Cerillion Gross Margin % Related Terms

Thank you for viewing the detailed overview of Cerillion's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Cerillion (LSE:CER) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Cerillion PLC (LSE:CER) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

25 Bedford Street, London, GBR, WC2E 9ES

Website

https://www.cerillion.com

Cerillion PLC is a charging, billing, and customer relationship management software company. It has Four operating segments include Services revenue, Software, Software-as-a-Service revenue, and Third party. Cerillion generates maximum revenue from the services segment. The services segment relates to revenue from providing services to customers on new implementation projects and enhancements. The software segment relates to support and maintenance revenue derived from people using the software. The software-as-a-service segment relates to monthly subscriptions for a managed service. The geographical segments are Uk & Europe, MEA, Asia Pacific, and the Americas. The majority of revenue is derived from Americas & MEA.

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