Edensoft Holdings's gross profit for the
six
months ended in Dec. 2023 was HK$50.4 Mil. Edensoft Holdings's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was HK$108.4 Mil.
Edensoft Holdings had a gross margin of 13.51% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
During the past 8 years, the highestGross Margin % of Edensoft Holdings was 12.74%. The lowest was 10.32%. And the median was 11.87%.
Edensoft Holdings Gross Profit Historical Data
The historical data trend for Edensoft Holdings's Gross Profit 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 Edensoft Holdings's Gross Profit
For the Information Technology Services subindustry, Edensoft Holdings's Gross Profit, along with its competitors' market caps and Gross Profit 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.
Edensoft Holdings's Gross Profit Distribution in the Software Industry
For the Software industry and Technology sector, Edensoft Holdings's Gross Profit distribution charts can be found below:
* The bar in red indicates where Edensoft Holdings's Gross Profit falls into.
Edensoft Holdings Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Edensoft Holdings's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$108.4 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
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
Edensoft Holdings had a gross margin of 13.51% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
Edensoft Holdings Gross Profit Related Terms
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Edensoft Holdings (HKSE:01147) Business Description
Hua Fu Street, 1006 Shennan Road, West, 2nd Floor, Building A, Futian Technology Square, Shenzhen International Innovation Center, Futian District, Shenzhen, CHN
Edensoft Holdings Ltd is engaged in provision of IT infrastructure services, IT implementation and supporting services and cloud services in the PRC. Its segment includes IT infrastructure services; IT implementation and supporting services; and Cloud services. It derives key revenue from the IT infrastructure services segment that assess customers' needs and their existing IT environment and providing IT infrastructure services by advising them on the suitable hardware and software products that their IT environment would require, and procuring the relevant hardware and software products from IT products vendors and installing these IT products in customers' IT environment. It operates in Mainland China and Hong Kong, of which prime revenue is derived from Mainland China.
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