Transcom WorldWide SA gross margin has been in long term decline. The average rate of decline per year is -2.3%.
The historical rank and industry rank for Transcom WorldWide's Gross Margin % or its related term are showing as below:
LTS:0GO2'
s Gross Margin % Range Over the Past 10 Years
Min: 17.41 Med: 20.86 Max: 23.5
Current: 20.24
During the past 12 years, the highestGross Margin % of Transcom WorldWide was 23.50%. The lowest was 17.41%. And the median was 20.86%.
LTS:0GO2's Gross Margin % is not ranked
in the Business Services industry.
Industry Median: 34.43
vs LTS:0GO2: 20.24
Transcom WorldWide had a gross margin of 20.76% for the quarter that ended in Sep. 2014 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Transcom WorldWide was -2.30% per year.
Transcom WorldWide Gross Margin % Historical Data
The historical data trend for Transcom WorldWide'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 Transcom WorldWide's Gross Margin %
For the Specialty Business Services subindustry, Transcom WorldWide'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.
Transcom WorldWide's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Transcom WorldWide's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Transcom WorldWide'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
Transcom WorldWide had a gross margin of 20.76% for the quarter that ended in Sep. 2014 => 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.
Transcom WorldWide Gross Margin % Related Terms
Thank you for viewing the detailed overview of Transcom WorldWide's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Transcom WorldWide (LTS:0GO2) Business Description
Transcom WorldWide SA was established in 1995. Together with its subsidiaries provide multi-language customer relationship management products and services ('CRM') and credit management services ('CMS'), including customer help lines and other telephone-based marketing and customer service programs ('teleservices') to clients in customer-intensive industries. The Group has two primary sources of revenues being its CRM (Customer Relationship Management) and its CMS (Credit Management Services) businesses. In relation to its CRM business, revenue mainly arise from call services operations. In relation to its CMS business, revenue mainly arise from fees and commissions generated from the collection of receivables on behalf of customers. The Company's operating segments are North Europe CRM (Denmark, Netherlands, Norway, Sweden, Estonia, Latvia and Lithuania), Central & South Europe CRM (Austria, Belgium, Croatia, Germany, Hungary, Italy, luxembourg, Poland, Slovakia, Switzerland, and Tunisia), Iberia & latam CRM (Chile, Peru, Portugal and Spain), North America & Asia Pacific CRM (Canada, the Philippines, USA, the United Kingdom and Australia), and CMS (Austria, the Czech Republic, the United Kingdom, Poland, Denmark, Norway and Sweden).
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