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Versalink Holdings (SGX:40N) Gross Margin % : 19.65% (As of Aug. 2023)


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What is Versalink Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Versalink Holdings's Gross Profit for the six months ended in Aug. 2023 was S$1.13 Mil. Versalink Holdings's Revenue for the six months ended in Aug. 2023 was S$5.73 Mil. Therefore, Versalink Holdings's Gross Margin % for the quarter that ended in Aug. 2023 was 19.65%.

Warning Sign:

Versalink Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.8%.


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

SGX:40N' s Gross Margin % Range Over the Past 10 Years
Min: 18.36   Med: 27.19   Max: 41.1
Current: 21.35


During the past 10 years, the highest Gross Margin % of Versalink Holdings was 41.10%. The lowest was 18.36%. And the median was 27.19%.

SGX:40N's Gross Margin % is ranked worse than
65.02% of 2933 companies
in the Industrial Products industry
Industry Median: 26.37 vs SGX:40N: 21.35

Versalink Holdings had a gross margin of 19.65% for the quarter that ended in Aug. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Versalink Holdings was -2.80% per year.


Versalink Holdings Gross Margin % Historical Data

The historical data trend for Versalink Holdings'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.

Versalink Holdings Gross Margin % Chart

Versalink Holdings Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.43 24.71 18.36 22.41 25.69

Versalink Holdings Semi-Annual Data
Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23
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 19.43 24.08 28.10 22.88 19.65

Competitive Comparison of Versalink Holdings's Gross Margin %

For the Business Equipment & Supplies subindustry, Versalink Holdings'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.


Versalink Holdings's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Versalink Holdings's Gross Margin % distribution charts can be found below:

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



Versalink Holdings Gross Margin % Calculation

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

Versalink Holdings's Gross Margin for the fiscal year that ended in Feb. 2023 is calculated as

Gross Margin % (A: Feb. 2023 )=Gross Profit (A: Feb. 2023 ) / Revenue (A: Feb. 2023 )
=3.5 / 13.688
=(Revenue - Cost of Goods Sold) / Revenue
=(13.688 - 10.172) / 13.688
=25.69 %

Versalink Holdings's Gross Margin for the quarter that ended in Aug. 2023 is calculated as


Gross Margin % (Q: Aug. 2023 )=Gross Profit (Q: Aug. 2023 ) / Revenue (Q: Aug. 2023 )
=1.1 / 5.729
=(Revenue - Cost of Goods Sold) / Revenue
=(5.729 - 4.603) / 5.729
=19.65 %

* 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.


Versalink Holdings  (SGX:40N) 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

Versalink Holdings had a gross margin of 19.65% for the quarter that ended in Aug. 2023 => 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.


Versalink Holdings Gross Margin % Related Terms

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Versalink Holdings (SGX:40N) Business Description

Traded in Other Exchanges
N/A
Address
Lot 6119, Jalan Haji Salleh, Batu 5 1/2, Off Jalan Meru, Klang, SGR, MYS, 41050
Versalink Holdings Ltd is principally engaged in the design, manufacture, and supply of a wide range of system furniture. The company also focuses on ancillary products such as seating models and work tools. It also provides workspace planning and consulting services to customers. The company operates in two business segments that include Domestic Sales and Export Sales. The export sales generate maximum revenue for the company. Geographically, the company operates in Malaysia, the Middle East, North America, Asia, Singapore, and others.

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