Bitfarms (Bitfarms) Gross Margin % : 3.80% (As of Dec. 2023)

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What is Bitfarms Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Bitfarms's Gross Profit for the three months ended in Dec. 2023 was $1.8 Mil. Bitfarms's Revenue for the three months ended in Dec. 2023 was $46.2 Mil. Therefore, Bitfarms's Gross Margin % for the quarter that ended in Dec. 2023 was 3.80%.

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

BITF' s Gross Margin % Range Over the Past 10 Years
Min: -14.76 Med: 20.23 Max: 65.56
Current: -14.76

During the past 7 years, the highest Gross Margin % of Bitfarms was 65.56%. The lowest was -14.76%. And the median was 20.23%.

BITF's Gross Margin % is ranked worse than
92.23% of 605 companies
in the Capital Markets industry
Industry Median: 48.91 vs BITF: -14.76

Bitfarms had a gross margin of 3.80% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

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

Bitfarms Gross Margin % Historical Data

The historical data trend for Bitfarms'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.

Bitfarms Gross Margin % Chart

Bitfarms Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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35.28

8.28

65.56

7.38

-14.69

Bitfarms Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															-44.69	-27.80	-17.02	-25.63	3.80

Competitive Comparison of Bitfarms's Gross Margin %

For the Capital Markets subindustry, Bitfarms'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.

Bitfarms's Gross Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Bitfarms's Gross Margin % distribution charts can be found below:

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

Bitfarms Gross Margin % Calculation

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

Bitfarms'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 )
	=	-21.5	/	146.366
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(146.366 - 167.868)	/	146.366
	=	-14.69 %

Bitfarms'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 )
	=	1.8	/	46.241
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(46.241 - 44.484)	/	46.241
	=	3.80 %

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.

Bitfarms (NAS:BITF) 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

Bitfarms had a gross margin of 3.80% for the quarter that ended in Dec. 2023 => No sustainable 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.

Bitfarms Gross Margin % Related Terms

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Bitfarms (Bitfarms) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Bitfarms Ltd (NAS:BITF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

1B2:Germany 1B2:Germany BITF:Canada

Address

18 King Street East, Suite 902, Toronto, ON, CAN, M5C 1C4

Website

https://www.bitfarms.com

Bitfarms Ltd is a publicly traded Bitcoin company. It develops, owns, and operates vertically integrated mining farms with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centers. The company's proprietary data analytics system delivers best-in-class operational performance and uptime. The group has around 10 farms, which are located in four countries: Canada, the United States, Paraguay, and Argentina. It is Powered by predominantly environmentally friendly hydroelectric and long-term power contracts, Bitfarms is committed to using sustainable, locally based, and often underutilized energy infrastructure.