Reckon (ASX:RKN) Gross Margin % : 87.09% (As of Jun. 2024)

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What is Reckon Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Reckon's Gross Profit for the six months ended in Jun. 2024 was A$24.71 Mil. Reckon's Revenue for the six months ended in Jun. 2024 was A$28.38 Mil. Therefore, Reckon's Gross Margin % for the quarter that ended in Jun. 2024 was 87.09%.

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

ASX:RKN' s Gross Margin % Range Over the Past 10 Years
Min: 77.44 Med: 86.48 Max: 88.73
Current: 85.4

During the past 13 years, the highest Gross Margin % of Reckon was 88.73%. The lowest was 77.44%. And the median was 86.48%.

ASX:RKN's Gross Margin % is ranked better than
92.63% of 2618 companies
in the Software industry
Industry Median: 41.435 vs ASX:RKN: 85.40

Reckon had a gross margin of 87.09% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Reckon was -0.60% per year.

Reckon Gross Margin % Historical Data

The historical data trend for Reckon'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.

Reckon Gross Margin % Chart

Reckon Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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87.47

88.43

88.73

85.29

85.48

Reckon Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Gross Margin %	Get a 7-Day Free Trial															87.00	83.38	87.26	83.49	87.09

Competitive Comparison of Reckon's Gross Margin %

For the Software - Application subindustry, Reckon'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.

Reckon's Gross Margin % Distribution in the Software Industry

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

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

Reckon Gross Margin % Calculation

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

Reckon'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 )
	=	45.5	/	53.232
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(53.232 - 7.73)	/	53.232
	=	85.48 %

Reckon's Gross Margin for the quarter that ended in Jun. 2024 is calculated as

Gross Margin % (Q: Jun. 2024 )	=	Gross Profit (Q: Jun. 2024 )	/	Revenue (Q: Jun. 2024 )
	=	24.7	/	28.379
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(28.379 - 3.665)	/	28.379
	=	87.09 %

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.

Reckon (ASX:RKN) 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

Reckon had a gross margin of 87.09% for the quarter that ended in Jun. 2024 => 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.

Reckon Gross Margin % Related Terms

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Reckon Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

UVW:Germany

Address

100 Pacific Highway, Level 2, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.reckon.com.au

Reckon Ltd provides accounting software to the small and medium enterprise market. It operates in two segments: Business Group, which develops, distributes, and supports business accounting and personal financial software, as well as related products and services; Legal segment is into development, distribution, and support of cost recovery, scan, and cloud-based integration platforms under the nQ Zebraworks brand predominantly to the legal market. The company's geographical segments are Australia, the United States, and Other countries. The company generates the majority of its revenue from Australia.

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