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Sage Group (The) (Sage Group (The)) Gross Margin % : 92.71% (As of Sep. 2023)


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What is Sage Group (The) Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sage Group (The)'s Gross Profit for the six months ended in Sep. 2023 was $1,259 Mil. Sage Group (The)'s Revenue for the six months ended in Sep. 2023 was $1,358 Mil. Therefore, Sage Group (The)'s Gross Margin % for the quarter that ended in Sep. 2023 was 92.71%.


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

SGPYY' s Gross Margin % Range Over the Past 10 Years
Min: 92.86   Med: 93.16   Max: 94.5
Current: 92.86


During the past 13 years, the highest Gross Margin % of Sage Group (The) was 94.50%. The lowest was 92.86%. And the median was 93.16%.

SGPYY's Gross Margin % is ranked better than
95.39% of 2624 companies
in the Software industry
Industry Median: 41.67 vs SGPYY: 92.86

Sage Group (The) had a gross margin of 92.71% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sage Group (The) was 0.00% per year.


Sage Group (The) Gross Margin % Historical Data

The historical data trend for Sage Group (The)'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.

Sage Group (The) Gross Margin % Chart

Sage Group (The) Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 92.87 93.38 92.90 92.91 92.86

Sage Group (The) Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 93.51 92.72 93.09 93.01 92.71

Competitive Comparison of Sage Group (The)'s Gross Margin %

For the Software - Application subindustry, Sage Group (The)'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.


Sage Group (The)'s Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Sage Group (The)'s Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sage Group (The)'s Gross Margin % falls into.



Sage Group (The) Gross Margin % Calculation

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

Sage Group (The)'s Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=2509.9 / 2702.97
=(Revenue - Cost of Goods Sold) / Revenue
=(2702.97 - 193.069) / 2702.97
=92.86 %

Sage Group (The)'s Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=1258.7 / 1357.673
=(Revenue - Cost of Goods Sold) / Revenue
=(1357.673 - 99.01) / 1357.673
=92.71 %

* 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.


Sage Group (The)  (OTCPK:SGPYY) 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

Sage Group (The) had a gross margin of 92.71% for the quarter that ended in Sep. 2023 => 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.


Sage Group (The) Gross Margin % Related Terms

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


Sage Group (The) (Sage Group (The)) Business Description

Traded in Other Exchanges
Address
C23 - 5 & 6 Cobalt Park Way, Cobalt Park, Newcastle upon Tyne, GBR, NE28 9EJ
The Sage Group is a U.K.-based provider of accounting and enterprise resource planning, or ERP, software, predominantly to customers in the U.S. and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud connected and cloud native products, sold via software-as-a-service, or SaaS, contracts. Sage's main cloud native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.