Softcat (LSE:SCT) Gross Margin % : 42.07% (As of Jan. 2024)

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What is Softcat Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Softcat's Gross Profit for the six months ended in Jan. 2024 was £196.5 Mil. Softcat's Revenue for the six months ended in Jan. 2024 was £467.2 Mil. Therefore, Softcat's Gross Margin % for the quarter that ended in Jan. 2024 was 42.07%.

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

LSE:SCT' s Gross Margin % Range Over the Past 10 Years
Min: 16.37 Med: 21.59 Max: 41.84
Current: 41.84

During the past 11 years, the highest Gross Margin % of Softcat was 41.84%. The lowest was 16.37%. And the median was 21.59%.

LSE:SCT's Gross Margin % is ranked better than
50.13% of 2633 companies
in the Software industry
Industry Median: 41.74 vs LSE:SCT: 41.84

Softcat had a gross margin of 42.07% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Softcat was 13.00% per year.

Softcat Gross Margin % Historical Data

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

Softcat Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Gross Margin %

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21.29

21.88

35.25

30.35

37.94

Softcat Semi-Annual Data
	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24
Gross Margin %	Get a 7-Day Free Trial															26.00	35.39	34.55	41.61	42.07

Competitive Comparison of Softcat's Gross Margin %

For the Information Technology Services subindustry, Softcat'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.

Softcat's Gross Margin % Distribution in the Software Industry

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

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

Softcat Gross Margin % Calculation

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

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

Gross Margin % (A: Jul. 2023 )	=	Gross Profit (A: Jul. 2023 )	/	Revenue (A: Jul. 2023 )
	=	373.8	/	985.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(985.3 - 611.466)	/	985.3
	=	37.94 %

Softcat's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	196.5	/	467.152
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(467.152 - 270.638)	/	467.152
	=	42.07 %

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.

Softcat (LSE:SCT) 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

Softcat had a gross margin of 42.07% for the quarter that ended in Jan. 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.

Softcat Gross Margin % Related Terms

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Softcat (LSE:SCT) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

SCTl:UK

Address

Fieldhouse Lane, Solar House, Marlow, Buckinghamshire, GBR, SL7 1LW

Website

https://www.softcat.com

Softcat PLC is a information technology infrastructure and service provider. It offers software licensing, workplace technology, networking and security, and cloud and data center solutions to the corporates, public sector organizations and small to medium-sized business segment, of which small to medium-sized business segment is the major business provider to the company. The entity earns revenue from offering products like software, hardware, and services, as well as the sale of the company's own services, of which majority of the revenue is derived from offering software products.