NOVA Technology (SZSE:300921) Gross Margin % : 26.78% (As of Mar. 2024)

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What is NOVA Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NOVA Technology's Gross Profit for the three months ended in Mar. 2024 was ¥45.9 Mil. NOVA Technology's Revenue for the three months ended in Mar. 2024 was ¥171.4 Mil. Therefore, NOVA Technology's Gross Margin % for the quarter that ended in Mar. 2024 was 26.78%.

Warning Sign:

NOVA Technology Corp Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.9%.

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

SZSE:300921' s Gross Margin % Range Over the Past 10 Years
Min: 29.63 Med: 35.18 Max: 38.47
Current: 29.63

During the past 8 years, the highest Gross Margin % of NOVA Technology was 38.47%. The lowest was 29.63%. And the median was 35.18%.

SZSE:300921's Gross Margin % is ranked worse than
75.28% of 352 companies
in the Telecommunication Services industry
Industry Median: 49.06 vs SZSE:300921: 29.63

NOVA Technology had a gross margin of 26.78% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for NOVA Technology was -2.90% per year.

NOVA Technology Gross Margin % Historical Data

The historical data trend for NOVA Technology'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.

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NOVA Technology Gross Margin % Chart

NOVA Technology Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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36.86

37.68

33.84

36.52

32.10

NOVA Technology 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															36.83	31.08	29.99	30.92	26.78

Competitive Comparison of NOVA Technology's Gross Margin %

For the Telecom Services subindustry, NOVA Technology'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.

NOVA Technology's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, NOVA Technology's Gross Margin % distribution charts can be found below:

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

NOVA Technology Gross Margin % Calculation

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

NOVA Technology'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 )
	=	193.8	/	603.71
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(603.71 - 409.94)	/	603.71
	=	32.10 %

NOVA Technology'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 )
	=	45.9	/	171.396
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(171.396 - 125.495)	/	171.396
	=	26.78 %

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.

NOVA Technology (SZSE:300921) 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

NOVA Technology had a gross margin of 26.78% for the quarter that ended in Mar. 2024 => 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.

NOVA Technology Gross Margin % Related Terms

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NOVA Technology (SZSE:300921) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » NOVA Technology Corp Ltd (SZSE:300921) » Definitions » Gross Margin %

Traded in Other Exchanges

N/A

Address

1006 Shennan Avenue, 16th Floor, Building A, Shenzhen International Innovation Center, Futian District, Guangdong Province, Shenzhen, CHN, 518033

Website

https://www.nova.net.cn

NOVA Technology Corp Ltd is a network communication services provider. It offers dedicated network communication, cloud computing and system integration services.

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