USU Software AG gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for USU Software AG's Gross Margin % or its related term are showing as below:
LTS:0NEY'
s Gross Margin % Range Over the Past 10 Years
Min: 48.88 Med: 52.26 Max: 55.23
Current: 48.88
During the past 13 years, the highestGross Margin % of USU Software AG was 55.23%. The lowest was 48.88%. And the median was 52.26%.
LTS:0NEY's Gross Margin % is ranked better than 58.23% of 2624
companies
in the Software industry
Industry Median: 41.67
vs LTS:0NEY: 48.88
USU Software AG had a gross margin of 51.38% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for USU Software AG was -1.30% per year.
USU Software AG Gross Margin % Historical Data
The historical data trend for USU Software AG'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.
Competitive Comparison of USU Software AG's Gross Margin %
For the Information Technology Services subindustry, USU Software AG'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.
USU Software AG's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, USU Software AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where USU Software AG'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.
USU Software AG (LTS:0NEY) 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
USU Software AG had a gross margin of 51.38% for the quarter that ended in Dec. 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.
USU Software AG Gross Margin % Related Terms
Thank you for viewing the detailed overview of USU Software AG's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
USU Software AG along with its subsidiaries provides IT and knowledge management software. The company organizes its operations into two main segments: Product Business and Service Business. The Product Business segment includes infrastructure management, service/change management, finance management, process management, and knowledge management. The Service Business segment encompasses consulting services for IT projects and individual application development. It derives the majority of its revenue from the Product Business segment. Its customers are based in Germany and operate in the fields of financial services, telecommunications, the automotive industry, consumer goods, services, and trade, as well as the public sector.
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