Gross Margin % is calculated as gross profit divided by its revenue. SPO Global's Gross Profit for the
three
months ended in Sep. 2023 was $1.53 Mil. SPO Global's Revenue for the
three
months ended in Sep. 2023 was $4.66 Mil. Therefore, SPO Global's Gross Margin % for the quarter that ended in Sep. 2023 was 32.80%.
The historical rank and industry rank for SPO Global's Gross Margin % or its related term are showing as below:
SPOM'
s Gross Margin % Range Over the Past 10 Years
Min: 15.82 Med: 41.68 Max: 95.68
Current: 32.8
During the past 13 years, the highestGross Margin % of SPO Global was 95.68%. The lowest was 15.82%. And the median was 41.68%.
SPOM's Gross Margin % is ranked better than 67.15% of 481
companies
in the Conglomerates industry
Industry Median: 25.03
vs SPOM: 32.80
SPO Global had a gross margin of 32.80% for the quarter that ended in Sep. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for SPO Global was 0.00% per year.
SPO Global Gross Margin % Historical Data
The historical data trend for SPO Global'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 SPO Global's Gross Margin %
For the Conglomerates subindustry, SPO Global'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.
SPO Global's Gross Margin % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, SPO Global's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SPO Global'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.
SPO Global (OTCPK:SPOM) 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
SPO Global had a gross margin of 32.80% for the quarter that ended in Sep. 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.
SPO Global Gross Margin % Related Terms
Thank you for viewing the detailed overview of SPO Global's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
SPO Global Inc is a holding company whose strategic plan is to acquire interests in emerging young businesses and provide financing, advice and guidance to assist them in realizing their potential. The Company is implementing an acquisition roll-up model of acquiring sales, marketing, and manufacturing businesses. The business scope of the company includes bio-pharmaceutical Research and development, development and sales of medical informatization software, medical high-tech introduction, production and sales of medical quality supplies, dietary supplements, and medicine, as well as agents and sales of medical equipment supplies.
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