Gross Margin % is calculated as gross profit divided by its revenue. Ebix's Gross Profit for the
three
months ended in Sep. 2023 was $86.6 Mil. Ebix's Revenue for the
three
months ended in Sep. 2023 was $119.2 Mil. Therefore, Ebix's Gross Margin % for the quarter that ended in Sep. 2023 was 72.61%.
Warning Sign:
Ebix Inc gross margin has been in long-term decline. The average rate of decline per year is -16.8%.
The historical rank and industry rank for Ebix's Gross Margin % or its related term are showing as below:
EBIXQ'
s Gross Margin % Range Over the Past 10 Years
Min: 29.1 Med: 65.42 Max: 80.23
Current: 46.99
During the past 13 years, the highestGross Margin % of Ebix was 80.23%. The lowest was 29.10%. And the median was 65.42%.
EBIXQ's Gross Margin % is ranked better than 55.97% of 2628
companies
in the Software industry
Industry Median: 41.685
vs EBIXQ: 46.99
Ebix had a gross margin of 72.61% for the quarter that ended in Sep. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Ebix was -16.80% per year.
Ebix Gross Margin % Historical Data
The historical data trend for Ebix'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, Ebix'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.
Ebix's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Ebix's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ebix'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.
Ebix (OTCPK:EBIXQ) 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
Ebix had a gross margin of 72.61% 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.
Ebix Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ebix's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ebix Inc is a provider of enterprise cloud e-commerce solutions for the insurance, finance, and healthcare industries. The company derives its revenues primarily from its financial transaction fees, software subscription, and transaction fees, software license fees, risk compliance solutions services fees, and professional service fees, including associated fees for consulting, implementation, training, and project management provided to customers with installed systems and applications. These exchanges connect multiple entities within the insurance and healthcare markets, enabling participants to carry and process data from one entity to another. Ebix generates the majority of its revenue from India.
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