Knowledge Tower Trading Co (SAU:9551) Gross Margin % : 42.68% (As of Sep. 2023)

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What is Knowledge Tower Trading Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Knowledge Tower Trading Co's Gross Profit for the six months ended in Sep. 2023 was ﷼9.14 Mil. Knowledge Tower Trading Co's Revenue for the six months ended in Sep. 2023 was ﷼21.42 Mil. Therefore, Knowledge Tower Trading Co's Gross Margin % for the quarter that ended in Sep. 2023 was 42.68%.

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

SAU:9551' s Gross Margin % Range Over the Past 10 Years
Min: 37.35 Med: 39 Max: 40.51
Current: 38.62

During the past 3 years, the highest Gross Margin % of Knowledge Tower Trading Co was 40.51%. The lowest was 37.35%. And the median was 39.00%.

SAU:9551's Gross Margin % is ranked better than
53.74% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.675 vs SAU:9551: 38.62

Knowledge Tower Trading Co had a gross margin of 42.68% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Knowledge Tower Trading Co was 0.00% per year.

Knowledge Tower Trading Co Gross Margin % Historical Data

The historical data trend for Knowledge Tower Trading Co'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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Knowledge Tower Trading Co Gross Margin % Chart

Knowledge Tower Trading Co Annual Data

Trend

Mar21

Mar22

Mar23

Gross Margin %

40.51

37.35

39.00

Knowledge Tower Trading Co Semi-Annual Data
	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial			36.14	53.79	43.30	28.27	42.68

Competitive Comparison of Knowledge Tower Trading Co's Gross Margin %

For the Specialty Retail subindustry, Knowledge Tower Trading Co'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.

Knowledge Tower Trading Co's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Knowledge Tower Trading Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Knowledge Tower Trading Co's Gross Margin % falls into.

Knowledge Tower Trading Co Gross Margin % Calculation

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

Knowledge Tower Trading Co'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 )
	=	11.4	/	29.324
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(29.324 - 17.888)	/	29.324
	=	39.00 %

Knowledge Tower Trading Co'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 )
	=	9.1	/	21.419
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(21.419 - 12.278)	/	21.419
	=	42.68 %

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.

Knowledge Tower Trading Co (SAU:9551) 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

Knowledge Tower Trading Co had a gross margin of 42.68% for the quarter that ended in Sep. 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.

Knowledge Tower Trading Co Gross Margin % Related Terms

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Knowledge Tower Trading Co (SAU:9551) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Knowledge Tower Trading Co (SAU:9551) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Ibn Yaqout Al-Hamawi Road, Al-Muraikbat District, Dammam, SAU, 7222 -32253

Website

https://www.kntbook.com

Knowledge Tower Trading Co is engaged in marketing and selling educational books for schools, universities, training institutes, and government educational institutions, developing educational programs for schools, providing electronic educational platforms, providing modern educational resources for training, and designing educational models.

Knowledge Tower Trading Co (SAU:9551) Headlines

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