abc Multiactive Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.7%.
The historical rank and industry rank for abc Multiactive's Gross Margin % or its related term are showing as below:
HKSE:08131'
s Gross Margin % Range Over the Past 10 Years
Min: 53.77 Med: 67.55 Max: 86.2
Current: 58.88
During the past 13 years, the highestGross Margin % of abc Multiactive was 86.20%. The lowest was 53.77%. And the median was 67.55%.
HKSE:08131's Gross Margin % is ranked better than 66.4% of 2631
companies
in the Software industry
Industry Median: 41.81
vs HKSE:08131: 58.88
abc Multiactive had a gross margin of 23.83% for the quarter that ended in Nov. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for abc Multiactive was -3.70% per year.
abc Multiactive Gross Margin % Historical Data
The historical data trend for abc Multiactive'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 abc Multiactive's Gross Margin %
For the Software - Application subindustry, abc Multiactive'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.
abc Multiactive's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, abc Multiactive's Gross Margin % distribution charts can be found below:
* The bar in red indicates where abc Multiactive'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.
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
abc Multiactive had a gross margin of 23.83% for the quarter that ended in Nov. 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.
abc Multiactive Gross Margin % Related Terms
Thank you for viewing the detailed overview of abc Multiactive's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
abc Multiactive Ltd is a Bermuda based company principally engaged in the design and sales of computer software licenses; computer software license leasing and provision of related services; provision of maintenance services; sales of computer hardware and related products; provision of fintech resources services and overseas mortgage loan consultancy services. The company's operating segments are financial solutions, consultancy services, and Fintech resources. Its products and services include trading and settlement of equity, futures, and equity options. It is also involved in internet trade, mobile trade, global trading and wealth management. Majority of the company's revenue is derived through the financial solutions segment from Hong Kong.
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