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Arco Vara AS (OTSE:ARC1T) Gross Margin % : 17.47% (As of Mar. 2024)


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What is Arco Vara AS Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Arco Vara AS's Gross Profit for the three months ended in Mar. 2024 was €0.17 Mil. Arco Vara AS's Revenue for the three months ended in Mar. 2024 was €0.99 Mil. Therefore, Arco Vara AS's Gross Margin % for the quarter that ended in Mar. 2024 was 17.47%.


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

OTSE:ARC1T' s Gross Margin % Range Over the Past 10 Years
Min: 13.84   Med: 28.33   Max: 35.55
Current: 29.38


During the past 13 years, the highest Gross Margin % of Arco Vara AS was 35.55%. The lowest was 13.84%. And the median was 28.33%.

OTSE:ARC1T's Gross Margin % is ranked worse than
60.73% of 1650 companies
in the Real Estate industry
Industry Median: 36.775 vs OTSE:ARC1T: 29.38

Arco Vara AS had a gross margin of 17.47% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Arco Vara AS was 2.70% per year.


Arco Vara AS Gross Margin % Historical Data

The historical data trend for Arco Vara AS'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.

Arco Vara AS Gross Margin % Chart

Arco Vara AS 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 13.84 19.51 26.13 19.13 30.53

Arco Vara AS Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 66.01 58.66 87.59 29.15 17.47

Competitive Comparison of Arco Vara AS's Gross Margin %

For the Real Estate - Development subindustry, Arco Vara AS'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.


Arco Vara AS's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Arco Vara AS's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Arco Vara AS's Gross Margin % falls into.



Arco Vara AS Gross Margin % Calculation

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

Arco Vara AS'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 )
=5.6 / 18.339
=(Revenue - Cost of Goods Sold) / Revenue
=(18.339 - 12.74) / 18.339
=30.53 %

Arco Vara AS's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=0.2 / 0.99
=(Revenue - Cost of Goods Sold) / Revenue
=(0.99 - 0.817) / 0.99
=17.47 %

* 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.


Arco Vara AS  (OTSE:ARC1T) 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

Arco Vara AS had a gross margin of 17.47% for the quarter that ended in Mar. 2024 => No sustainable 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.


Arco Vara AS Gross Margin % Related Terms

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Arco Vara AS (OTSE:ARC1T) Business Description

Traded in Other Exchanges
N/A
Address
Rotermanni 10, Tallinn, EST, 10111
Arco Vara AS is a real estate group in the Baltic States. The group is engaged in real estate development and services related to real estate. The main activity of the group is the development of complete living environments and related commercial real estate. In the development of the living environment, the completed homes are sold to the final consumer. The focus of the group is on the development of the residential real estate. The company operates in a single segment which is the construction and development segment. Its primary geographic markets are Estonia and Bulgaria.

Arco Vara AS (OTSE:ARC1T) Headlines

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