Gross Margin % is calculated as gross profit divided by its revenue. TSS's Gross Profit for the
three
months ended in Dec. 2023 was $3.26 Mil. TSS's Revenue for the
three
months ended in Dec. 2023 was $24.41 Mil. Therefore, TSS's Gross Margin % for the quarter that ended in Dec. 2023 was 13.37%.
Warning Sign:
TSS Inc gross margin has been in long-term decline. The average rate of decline per year is -4.5%.
The historical rank and industry rank for TSS's Gross Margin % or its related term are showing as below:
TSSI'
s Gross Margin % Range Over the Past 10 Years
Min: 15.1 Med: 27.36 Max: 42.18
Current: 20.22
During the past 13 years, the highestGross Margin % of TSS was 42.18%. The lowest was 15.10%. And the median was 27.36%.
TSSI's Gross Margin % is ranked worse than 81.64% of 2631
companies
in the Software industry
Industry Median: 41.74
vs TSSI: 20.22
TSS had a gross margin of 13.37% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TSS was -4.50% per year.
TSS Gross Margin % Historical Data
The historical data trend for TSS'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.
For the Information Technology Services subindustry, TSS'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.
TSS's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, TSS's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TSS'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.
TSS (OTCPK:TSSI) 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
TSS had a gross margin of 13.37% for the quarter that ended in Dec. 2023 => No sustainable 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.
TSS Gross Margin % Related Terms
Thank you for viewing the detailed overview of TSS's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
TSS Inc provides various services for planning, design, development, and maintenance of mission-critical facilities and information infrastructure, as well as integration services. Its services consist of technology consulting, design and engineering, project management, systems integration, systems installation, and facilities management. Its Facilities unit which is involved in the design, project management and maintenance of data center and mission-critical business operations, and Systems Integration unit that integrates IT equipment for Original Equipment Manufacturer vendors and customers to use inside data center environments, including modular data centers. The activities are organized into two segments: facilities, and systems integration. It generates revenue from United States.
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