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Adesso SE (Adesso SE) Gross Margin % : 40.93% (As of Dec. 2023)


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What is Adesso SE Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Adesso SE's Gross Profit for the six months ended in Dec. 2023 was $263 Mil. Adesso SE's Revenue for the six months ended in Dec. 2023 was $643 Mil. Therefore, Adesso SE's Gross Margin % for the quarter that ended in Dec. 2023 was 40.93%.

Warning Sign:

Adesso SE gross margin has been in long-term decline. The average rate of decline per year is -3.9%.


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

ADSGF' s Gross Margin % Range Over the Past 10 Years
Min: 24.25   Med: 32.38   Max: 34.62
Current: 28.54


During the past 13 years, the highest Gross Margin % of Adesso SE was 34.62%. The lowest was 24.25%. And the median was 32.38%.

ADSGF's Gross Margin % is ranked worse than
67.36% of 2635 companies
in the Software industry
Industry Median: 41.74 vs ADSGF: 28.54

Adesso SE had a gross margin of 40.93% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Adesso SE was -3.90% per year.


Adesso SE Gross Margin % Historical Data

The historical data trend for Adesso SE'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.

Adesso SE Gross Margin % Chart

Adesso SE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 34.62 31.37 30.04 29.94 28.54

Adesso SE Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 39.49 18.52 39.58 15.16 40.93

Competitive Comparison of Adesso SE's Gross Margin %

For the Information Technology Services subindustry, Adesso SE'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.


Adesso SE's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Adesso SE's Gross Margin % falls into.



Adesso SE Gross Margin % Calculation

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

Adesso SE'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 )
=353.5 / 1238.716
=(Revenue - Cost of Goods Sold) / Revenue
=(1238.716 - 885.243) / 1238.716
=28.54 %

Adesso SE'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 )
=263.2 / 642.974
=(Revenue - Cost of Goods Sold) / Revenue
=(642.974 - 379.81) / 642.974
=40.93 %

* 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.


Adesso SE  (OTCPK:ADSGF) 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

Adesso SE had a gross margin of 40.93% 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.


Adesso SE Gross Margin % Related Terms

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


Adesso SE (Adesso SE) Business Description

Traded in Other Exchanges
Address
Adessoplatz 1, Dortmund, NW, DEU, 44269
Adesso SE is a German IT service provider company. The company offers consulting and software development services for optimising core business processes. It also offers ready-to-use software products for standard applications. The company generates most of its sales revenue through consulting and software development in Germany. It has two segments, namely, IT Services and IT Solutions. The IT Services segment offers customised, project-oriented services in the areas of consulting and software development. The IT Solutions segment markets its own solutions as homegrown products or standard software products. The IT service segment generates majority of revenue.

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