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SofTech (SofTech) Gross Margin % : 63.11% (As of Nov. 2016)


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What is SofTech Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SofTech's Gross Profit for the three months ended in Nov. 2016 was $0.40 Mil. SofTech's Revenue for the three months ended in Nov. 2016 was $0.64 Mil. Therefore, SofTech's Gross Margin % for the quarter that ended in Nov. 2016 was 63.11%.


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


SOFT's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.74
* Ranked among companies with meaningful Gross Margin % only.

SofTech had a gross margin of 63.11% for the quarter that ended in Nov. 2016 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for SofTech was 0.00% per year.


SofTech Gross Margin % Historical Data

The historical data trend for SofTech'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.

SofTech Gross Margin % Chart

SofTech Annual Data
Trend May06 May07 May08 May09 May11 May12 May13 May14 May15 May16
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 78.09 78.37 68.72 57.13 63.55

SofTech Quarterly Data
Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16
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 66.03 61.29 67.31 61.36 63.11

Competitive Comparison of SofTech's Gross Margin %

For the Software - Application subindustry, SofTech'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.


SofTech's Gross Margin % Distribution in the Software Industry

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

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



SofTech Gross Margin % Calculation

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

SofTech's Gross Margin for the fiscal year that ended in May. 2016 is calculated as

Gross Margin % (A: May. 2016 )=Gross Profit (A: May. 2016 ) / Revenue (A: May. 2016 )
=2.7 / 4.176
=(Revenue - Cost of Goods Sold) / Revenue
=(4.176 - 1.522) / 4.176
=63.55 %

SofTech's Gross Margin for the quarter that ended in Nov. 2016 is calculated as


Gross Margin % (Q: Nov. 2016 )=Gross Profit (Q: Nov. 2016 ) / Revenue (Q: Nov. 2016 )
=0.4 / 0.637
=(Revenue - Cost of Goods Sold) / Revenue
=(0.637 - 0.235) / 0.637
=63.11 %

* 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.


SofTech  (OTCPK:SOFT) 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

SofTech had a gross margin of 63.11% for the quarter that ended in Nov. 2016 => 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.


SofTech Gross Margin % Related Terms

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


SofTech (SofTech) Business Description

Traded in Other Exchanges
N/A
Address
650 Suffolk Street, Suite 415, Lowell, MA, USA, 01854
SofTech Inc is engaged in the development, marketing, distribution and support of computer software solutions that enable companies to manage the lifecycle of their products from conception through design and manufacture, to service and disposal. The company's service offerings include consulting, training and discrete engineering services. These solutions include software technology offerings for computer-aided design, and product data management and collaboration technologies. In addition, the company offers a technology platform that allows data exchange between various third-party technology offerings known as the company's connector offering.
Executives
Joseph Patrick Daly 10 percent owner 497 CIRCLE FREEWAY, CINCINNATI OH 45246
J Phillip Cooper director

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