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Computer And Technologies Holdings (HKSE:00046) Gross Margin % : 52.71% (As of Dec. 2023)


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What is Computer And Technologies Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Computer And Technologies Holdings's Gross Profit for the six months ended in Dec. 2023 was HK$68.2 Mil. Computer And Technologies Holdings's Revenue for the six months ended in Dec. 2023 was HK$129.4 Mil. Therefore, Computer And Technologies Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 52.71%.

Warning Sign:

Computer And Technologies Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.4%.


The historical rank and industry rank for Computer And Technologies Holdings's Gross Margin % or its related term are showing as below:

HKSE:00046' s Gross Margin % Range Over the Past 10 Years
Min: 52.06   Med: 56.38   Max: 57.41
Current: 52.75


During the past 13 years, the highest Gross Margin % of Computer And Technologies Holdings was 57.41%. The lowest was 52.06%. And the median was 56.38%.

HKSE:00046's Gross Margin % is ranked better than
61.65% of 2631 companies
in the Software industry
Industry Median: 41.74 vs HKSE:00046: 52.75

Computer And Technologies Holdings had a gross margin of 52.71% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Computer And Technologies Holdings was -1.40% per year.


Computer And Technologies Holdings Gross Margin % Historical Data

The historical data trend for Computer And Technologies Holdings'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.

* Premium members only.

Computer And Technologies Holdings Gross Margin % Chart

Computer And Technologies Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 56.27 56.50 57.41 53.96 52.75

Computer And Technologies Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 61.24 54.68 53.30 52.79 52.71

Competitive Comparison of Computer And Technologies Holdings's Gross Margin %

For the Information Technology Services subindustry, Computer And Technologies Holdings'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.


Computer And Technologies Holdings's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Computer And Technologies Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Computer And Technologies Holdings's Gross Margin % falls into.



Computer And Technologies Holdings Gross Margin % Calculation

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

Computer And Technologies Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=135.8 / 257.504
=(Revenue - Cost of Goods Sold) / Revenue
=(257.504 - 121.663) / 257.504
=52.75 %

Computer And Technologies Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=68.2 / 129.402
=(Revenue - Cost of Goods Sold) / Revenue
=(129.402 - 61.19) / 129.402
=52.71 %

* 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.


Computer And Technologies Holdings  (HKSE:00046) 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

Computer And Technologies Holdings had a gross margin of 52.71% for the quarter that ended in Dec. 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.


Computer And Technologies Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Computer And Technologies Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Computer And Technologies Holdings (HKSE:00046) Business Description

Traded in Other Exchanges
Address
100 Cyberport Road, Level 10, Cyberport 2, Hong Kong, HKG
Computer And Technologies Holdings Ltd provides software products. It operates in three segments, the Application Services segment; the Integration and Solutions services segment; and the investments segment. It generates majority of the revenue from the Application Services segment that engages in the provision of enterprise applications software and e-business services for enterprises including the provision of enterprise applications software with implementation and ongoing support services; and the GETS, cloud services and other related value-added services. Geographical revenue is derived from Hong Kong and other countries.

Computer And Technologies Holdings (HKSE:00046) Headlines

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