Made Tech Group (LSE:MTEC) Gross Margin % : 37.14% (As of Nov. 2023)

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What is Made Tech Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Made Tech Group's Gross Profit for the six months ended in Nov. 2023 was £7.11 Mil. Made Tech Group's Revenue for the six months ended in Nov. 2023 was £19.13 Mil. Therefore, Made Tech Group's Gross Margin % for the quarter that ended in Nov. 2023 was 37.14%.

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

LSE:MTEC' s Gross Margin % Range Over the Past 10 Years
Min: 28.25 Med: 37.6 Max: 43.16
Current: 38

During the past 5 years, the highest Gross Margin % of Made Tech Group was 43.16%. The lowest was 28.25%. And the median was 37.60%.

LSE:MTEC's Gross Margin % is ranked worse than
54.89% of 2638 companies
in the Software industry
Industry Median: 41.845 vs LSE:MTEC: 38.00

Made Tech Group had a gross margin of 37.14% for the quarter that ended in Nov. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Made Tech Group was 0.00% per year.

Made Tech Group Gross Margin % Historical Data

The historical data trend for Made Tech 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.

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Made Tech Group Gross Margin % Chart

Made Tech Group Annual Data

Trend

May19

May20

May21

May22

May23

Gross Margin %

28.25

43.16

37.60

38.43

35.81

Made Tech Group Semi-Annual Data
	May19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Gross Margin %	Get a 7-Day Free Trial				39.10	37.99	32.92	38.83	37.14

Competitive Comparison of Made Tech Group's Gross Margin %

For the Information Technology Services subindustry, Made Tech 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.

Made Tech Group's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Made Tech Group's Gross Margin % falls into.

Made Tech Group Gross Margin % Calculation

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

Made Tech Group's Gross Margin for the fiscal year that ended in May. 2023 is calculated as

Gross Margin % (A: May. 2023 )	=	Gross Profit (A: May. 2023 )	/	Revenue (A: May. 2023 )
	=	14.4	/	40.195
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(40.195 - 25.802)	/	40.195
	=	35.81 %

Made Tech Group's Gross Margin for the quarter that ended in Nov. 2023 is calculated as

Gross Margin % (Q: Nov. 2023 )	=	Gross Profit (Q: Nov. 2023 )	/	Revenue (Q: Nov. 2023 )
	=	7.1	/	19.134
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(19.134 - 12.027)	/	19.134
	=	37.14 %

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.

Made Tech Group (LSE:MTEC) 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

Made Tech Group had a gross margin of 37.14% for the quarter that ended in Nov. 2023 => Competition eroding margins

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.

Made Tech Group Gross Margin % Related Terms

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Made Tech Group (LSE:MTEC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Made Tech Group PLC (LSE:MTEC) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

5UH:Germany

Address

4 O’Meara Street, London, GBR, SE1 1TE

Website

https://www.madetech.com

Made Tech Group PLC provides digital, data and technology services to the UK public sector, that enables central government, healthcare, and local government organisations to digitally transform. Its projects include delivering and operating the Multichannel Digital Tax Platform (MDTP), which runs HMRC's Making Tax Digital services; supporting the Ministry of Justice to modernise the technology within the prison estate; and working with DVLA to digitally transform key services such as the UK provisional driving licence system.

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