NextEd Group (ASX:NXD) Gross Margin % : 51.30% (As of Dec. 2023)

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What is NextEd Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NextEd Group's Gross Profit for the six months ended in Dec. 2023 was A$30.4 Mil. NextEd Group's Revenue for the six months ended in Dec. 2023 was A$59.2 Mil. Therefore, NextEd Group's Gross Margin % for the quarter that ended in Dec. 2023 was 51.30%.

Warning Sign:

NextEd Group 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 NextEd Group's Gross Margin % or its related term are showing as below:

ASX:NXD' s Gross Margin % Range Over the Past 10 Years
Min: 42.97 Med: 59.5 Max: 70.66
Current: 52.38

During the past 13 years, the highest Gross Margin % of NextEd Group was 70.66%. The lowest was 42.97%. And the median was 59.50%.

ASX:NXD's Gross Margin % is ranked better than
60.16% of 246 companies
in the Education industry
Industry Median: 47.335 vs ASX:NXD: 52.38

NextEd Group had a gross margin of 51.30% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NextEd Group was -4.00% per year.

NextEd Group Gross Margin % Historical Data

The historical data trend for NextEd Group'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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NextEd Group Gross Margin % Chart

NextEd Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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70.27

42.97

51.97

61.37

55.63

NextEd Group 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															58.75	63.05	58.53	53.48	51.30

Competitive Comparison of NextEd Group's Gross Margin %

For the Education & Training Services subindustry, NextEd Group'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.

NextEd Group's Gross Margin % Distribution in the Education Industry

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

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

NextEd Group Gross Margin % Calculation

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

NextEd Group'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 )
	=	56.9	/	102.22
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(102.22 - 45.352)	/	102.22
	=	55.63 %

NextEd Group'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 )
	=	30.4	/	59.201
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(59.201 - 28.832)	/	59.201
	=	51.30 %

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.

NextEd Group (ASX:NXD) 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

NextEd Group had a gross margin of 51.30% 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.

NextEd Group Gross Margin % Related Terms

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NextEd Group (ASX:NXD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » NextEd Group Ltd (ASX:NXD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

7 Kelly Street, Level 2, Ultimo, NSW, AUS, 2007

Website

https://www.nexted.com.au

NextEd Group Ltd is engaged in the provision of vocational education and training solutions. It offers training predominantly in the areas of Allied Health and Community Services. It currently provides training to a range of existing workers, job seekers, and school leavers throughout campuses. Its segments are Technology & Design, International Vocational, Go Study and Domestic Vocational.

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