DXN (ASX:DXN) Gross Margin % : 63.70% (As of Dec. 2023)

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What is DXN Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. DXN's Gross Profit for the six months ended in Dec. 2023 was A$2.40 Mil. DXN's Revenue for the six months ended in Dec. 2023 was A$3.76 Mil. Therefore, DXN's Gross Margin % for the quarter that ended in Dec. 2023 was 63.70%.

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

ASX:DXN' s Gross Margin % Range Over the Past 10 Years
Min: 20.94 Med: 27.98 Max: 59.76
Current: 59.76

During the past 5 years, the highest Gross Margin % of DXN was 59.76%. The lowest was 20.94%. And the median was 27.98%.

ASX:DXN's Gross Margin % is ranked better than
67.59% of 2635 companies
in the Software industry
Industry Median: 41.74 vs ASX:DXN: 59.76

DXN had a gross margin of 63.70% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for DXN was 0.00% per year.

DXN Gross Margin % Historical Data

The historical data trend for DXN'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.

DXN Gross Margin % Chart

DXN Annual Data

Trend

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

20.94

27.00

27.98

30.23

51.11

DXN Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial						26.03	33.41	48.15	53.98	63.70

Competitive Comparison of DXN's Gross Margin %

For the Information Technology Services subindustry, DXN'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.

DXN's Gross Margin % Distribution in the Software Industry

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

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

DXN Gross Margin % Calculation

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

DXN's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	2.6	/	5.048
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5.048 - 2.468)	/	5.048
	=	51.11 %

DXN'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 )
	=	2.4	/	3.76
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3.76 - 1.365)	/	3.76
	=	63.70 %

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.

DXN (ASX:DXN) 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

DXN had a gross margin of 63.70% 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.

DXN Gross Margin % Related Terms

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DXN (ASX:DXN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » DXN Ltd (ASX:DXN) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3 Dampier Road, Welshpool, WA, AUS, 6106

Website

https://www.dxn.solutions

DXN Ltd operates as a data centre company .It is engaged in data centre manufacturing division engineers, constructs and commissions data centre solutions globally. Data centres provide space, power, cooling, and physical security for clients to house their computer servers and related storage and networking equipment. It has a wide range of applications, which includes edge data centres and telecommunications applications (satellite, radio centres, cable landing stations). It also offers management and maintenance to all DXN Data Centres and remote Modular Data Centres. Business operating segments include; Data Centre Manufacturing and Data Centre Operations. Substantial revenue comes from the Data Centre Manufacturing segment.

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