GURUFOCUS.COM » STOCK LIST » Technology » Software » NTG Clarity Networks Inc (TSXV:NCI) » Definitions » Gross Margin %

NTG Clarity Networks (TSXV:NCI) Gross Margin % : 44.02% (As of Sep. 2023)


View and export this data going back to 2000. Start your Free Trial

What is NTG Clarity Networks Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NTG Clarity Networks's Gross Profit for the three months ended in Sep. 2023 was C$3.08 Mil. NTG Clarity Networks's Revenue for the three months ended in Sep. 2023 was C$7.00 Mil. Therefore, NTG Clarity Networks's Gross Margin % for the quarter that ended in Sep. 2023 was 44.02%.


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

TSXV:NCI' s Gross Margin % Range Over the Past 10 Years
Min: 17.02   Med: 36.6   Max: 55.38
Current: 37.09


During the past 13 years, the highest Gross Margin % of NTG Clarity Networks was 55.38%. The lowest was 17.02%. And the median was 36.60%.

TSXV:NCI's Gross Margin % is ranked worse than
56.3% of 2625 companies
in the Software industry
Industry Median: 41.71 vs TSXV:NCI: 37.09

NTG Clarity Networks had a gross margin of 44.02% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NTG Clarity Networks was 3.40% per year.


NTG Clarity Networks Gross Margin % Historical Data

The historical data trend for NTG Clarity Networks'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.

NTG Clarity Networks Gross Margin % Chart

NTG Clarity Networks Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 43.87 26.12 28.25 55.38 38.08

NTG Clarity Networks Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 43.08 27.84 36.82 38.07 44.02

Competitive Comparison of NTG Clarity Networks's Gross Margin %

For the Software - Application subindustry, NTG Clarity Networks'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.


NTG Clarity Networks's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where NTG Clarity Networks's Gross Margin % falls into.



NTG Clarity Networks Gross Margin % Calculation

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

NTG Clarity Networks's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=6.7 / 17.652
=(Revenue - Cost of Goods Sold) / Revenue
=(17.652 - 10.93) / 17.652
=38.08 %

NTG Clarity Networks's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=3.1 / 7.004
=(Revenue - Cost of Goods Sold) / Revenue
=(7.004 - 3.921) / 7.004
=44.02 %

* 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.


NTG Clarity Networks  (TSXV:NCI) 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

NTG Clarity Networks had a gross margin of 44.02% 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.


NTG Clarity Networks Gross Margin % Related Terms

Thank you for viewing the detailed overview of NTG Clarity Networks's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


NTG Clarity Networks (TSXV:NCI) Business Description

Traded in Other Exchanges
Address
2820 Fourteenth Avenue, Suite 202, Markham, ON, CAN, L3R 0S9
NTG Clarity Networks Inc provides telecommunications engineering, Information Technology, networking, and related software solutions. It develops niche software products directed at telecom service providers and utilities markets. The company also provides professional services and managed services to the same vertical. In addition, it has also expanded into the financial and government sectors by providing products and technical resources to assist customers with projects that include digital transformation. The company`s Canadian segment is made up of activities in Canada and offices in Saudi Arabia and Oman; and the Egypt segment is a software development group that also provides professional services, offshoring services, and network services to customers in Egypt.

NTG Clarity Networks (TSXV:NCI) Headlines