Mdf Commerce (Mdf Commerce) Gross Margin % : 58.47% (As of Dec. 2023)

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What is Mdf Commerce Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Mdf Commerce's Gross Profit for the three months ended in Dec. 2023 was $13.16 Mil. Mdf Commerce's Revenue for the three months ended in Dec. 2023 was $22.50 Mil. Therefore, Mdf Commerce's Gross Margin % for the quarter that ended in Dec. 2023 was 58.47%.

Warning Sign:

Mdf Commerce Inc gross margin has been in long-term decline. The average rate of decline per year is -6.8%.

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

MECVF' s Gross Margin % Range Over the Past 10 Years
Min: 56.67 Med: 76.3 Max: 80.62
Current: 57.94

During the past 13 years, the highest Gross Margin % of Mdf Commerce was 80.62%. The lowest was 56.67%. And the median was 76.30%.

MECVF's Gross Margin % is ranked better than
66.29% of 2628 companies
in the Software industry
Industry Median: 41.71 vs MECVF: 57.94

Mdf Commerce had a gross margin of 58.47% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Mdf Commerce was -6.80% per year.

Mdf Commerce Gross Margin % Historical Data

The historical data trend for Mdf Commerce'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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Mdf Commerce Gross Margin % Chart

Mdf Commerce Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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74.86

71.42

64.55

56.67

57.09

Mdf Commerce Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															56.34	56.18	57.13	60.03	58.47

Competitive Comparison of Mdf Commerce's Gross Margin %

For the Software - Infrastructure subindustry, Mdf Commerce'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.

Mdf Commerce's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Mdf Commerce's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Mdf Commerce's Gross Margin % falls into.

Mdf Commerce Gross Margin % Calculation

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

Mdf Commerce's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	53.5	/	93.762
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(93.762 - 40.236)	/	93.762
	=	57.09 %

Mdf Commerce's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	13.2	/	22.502
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(22.502 - 9.344)	/	22.502
	=	58.47 %

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.

Mdf Commerce (OTCPK:MECVF) 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

Mdf Commerce had a gross margin of 58.47% 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.

Mdf Commerce Gross Margin % Related Terms

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Mdf Commerce (Mdf Commerce) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Mdf Commerce Inc (OTCPK:MECVF) » Definitions » Gross Margin %

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Traded in Other Exchanges

MDF:Canada

Address

1111 St-Charles Street West, East Tower, Suite 255, Longueuil, QC, CAN, J4K 5G4

Website

https://www.mdfcommerce.com

Mdf Commerce Inc enables the flow of commerce by providing a broad set of SaaS solutions that optimize and accelerate commercial interactions between buyers and sellers. Its platforms and services empower businesses around the world, allowing them to generate billions of dollars in transactions on an annual basis. The company's procurement, e-commerce and e-marketplace platforms are supported by a strong and dedicated team based in Canada, the United States, Denmark, Ukraine, and China.