Gross Margin % is calculated as gross profit divided by its revenue. Paybox's Gross Profit for the
three
months ended in Dec. 2016 was $0.46 Mil. Paybox's Revenue for the
three
months ended in Dec. 2016 was $1.47 Mil. Therefore, Paybox's Gross Margin % for the quarter that ended in Dec. 2016 was 31.49%.
The historical rank and industry rank for Paybox's Gross Margin % or its related term are showing as below:
PBOX's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.825 * Ranked among companies with meaningful Gross Margin % only.
Paybox had a gross margin of 31.49% for the quarter that ended in Dec. 2016 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Paybox was 0.00% per year.
Paybox Gross Margin % Historical Data
The historical data trend for Paybox'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.
For the Software - Application subindustry, Paybox'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.
Paybox's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Paybox's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paybox'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.
Paybox (OTCPK:PBOX) 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
Paybox had a gross margin of 31.49% for the quarter that ended in Dec. 2016 => 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.
Paybox Gross Margin % Related Terms
Thank you for viewing the detailed overview of Paybox's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Paybox Corp operates as a software as a service provider (SaaS) company. It provides a unified working capital management platform for Order-to-Cash and Procure-to-Pay processes. The company offers PAYBOX, an Order-to-Cash process, which streamlines the receivables processes by combining invoice presentment, online adjustments, and approvals, electronic payments, enterprise resource planning, or lockbox system to corporate users primarily through banks. In addition, it also provides Procure-to-Pay, an e-invoice management solution for accounts payable, which renders various services, including supplier self-service portal, supplier electronic invoice submission, invoice matching and workflow exception handling, invoice approval and payment, and vendor boarding and supplier services.
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