Ellies Holdings (JSE:ELI) Gross Margin % : 21.65% (As of Oct. 2023)

Ellies Holdings Gross Margin % Chart

Ellies Holdings Annual Data
	Trend	Apr14	Apr15	Apr16	Apr17	Apr18	Apr19	Apr20	Apr21	Apr22	Apr23
Gross Margin %		Get a 7-Day Free Trial					25.67	28.75	32.79	24.14	25.06

Ellies Holdings Semi-Annual Data
	Apr14	Oct14	Apr15	Oct15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
Gross Margin %	Get a 7-Day Free Trial															25.90	22.72	26.44	23.60	21.65

Competitive Comparison of Ellies Holdings's Gross Margin %

For the Communication Equipment subindustry, Ellies 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.

Ellies Holdings's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Ellies Holdings's Gross Margin % distribution charts can be found below:

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

Ellies Holdings Gross Margin % Calculation

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

Ellies Holdings's Gross Margin for the fiscal year that ended in Apr. 2023 is calculated as

Ellies Holdings's Gross Margin for the quarter that ended in Oct. 2023 is calculated as

* 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.

Ellies Holdings  (JSE:ELI) 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

Ellies Holdings had a gross margin of 21.65% for the quarter that ended in Oct. 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.

Ellies Holdings Gross Margin % Related Terms

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Ellies Holdings (JSE:ELI) Business Description