Embark Early Education (ASX:EVO) Gross Margin % : 141.95% (As of Dec. 2023)

View and export this data going back to 2014. Start your Free Trial

What is Embark Early Education Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Embark Early Education's Gross Profit for the six months ended in Dec. 2023 was A$-16.62 Mil. Embark Early Education's Revenue for the six months ended in Dec. 2023 was A$-11.71 Mil. Therefore, Embark Early Education's Gross Margin % for the quarter that ended in Dec. 2023 was 141.95%.

Warning Sign:

Embark Early Education Ltd gross margin has been in long-term decline. The average rate of decline per year is -4%.

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

ASX:EVO' s Gross Margin % Range Over the Past 10 Years
Min: 64.21 Med: 72.58 Max: 89.53
Current: 71.52

During the past 8 years, the highest Gross Margin % of Embark Early Education was 89.53%. The lowest was 64.21%. And the median was 72.58%.

ASX:EVO's Gross Margin % is ranked better than
82.33% of 249 companies
in the Education industry
Industry Median: 47.9 vs ASX:EVO: 71.52

Embark Early Education had a gross margin of 141.95% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Embark Early Education was -4.00% per year.

Embark Early Education Gross Margin % Historical Data

The historical data trend for Embark Early Education'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.

Embark Early Education Gross Margin % Chart

Embark Early Education Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

70.64

72.83

65.43

64.21

72.32

Embark Early Education Semi-Annual Data
	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial												177.32	-	111.62	-	141.95

Competitive Comparison of Embark Early Education's Gross Margin %

For the Education & Training Services subindustry, Embark Early Education'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.

Embark Early Education's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Embark Early Education's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Embark Early Education's Gross Margin % falls into.

Embark Early Education Gross Margin % Calculation

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

Embark Early Education'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 )
	=	12.8	/	17.742
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(17.742 - 4.911)	/	17.742
	=	72.32 %

Embark Early Education'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 )
	=	-16.6	/	-11.708
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(-11.708 - 4.912)	/	-11.708
	=	141.95 %

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.

Embark Early Education (ASX:EVO) 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

Embark Early Education had a gross margin of 141.95% 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.

Embark Early Education Gross Margin % Related Terms

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

Embark Early Education (ASX:EVO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Embark Early Education Ltd (ASX:EVO) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

120-122 Siganto Drive, Suite 102, Level 1, M1 Connect Business Hub, Helensvale, Gold Coast, QLD, AUS, 4212

Website

https://www.embarkeducation.com.au

Embark Early Education Ltd is a company that is engaged in the provision and management of an early childhood education service that gives parents and caregivers the option of which service suits their child's learning and care needs. The Group reports operating segments by geographical location, namely New Zealand and Australia. The majority of revenue is from the New Zealand segment. The principal activities of the Company include the management of high-quality early childhood education centres.