ELWS (Earlyworks Co) Gross Margin % : 59.03% (As of Oct. 2024)

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What is Earlyworks Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Earlyworks Co's Gross Profit for the six months ended in Oct. 2024 was $0.89 Mil. Earlyworks Co's Revenue for the six months ended in Oct. 2024 was $1.50 Mil. Therefore, Earlyworks Co's Gross Margin % for the quarter that ended in Oct. 2024 was 59.03%.

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

ELWS' s Gross Margin % Range Over the Past 10 Years
Min: 34.38 Med: 77.85 Max: 84.47
Current: 63.75

During the past 4 years, the highest Gross Margin % of Earlyworks Co was 84.47%. The lowest was 34.38%. And the median was 77.85%.

ELWS's Gross Margin % is ranked better than
73.55% of 2635 companies
in the Software industry
Industry Median: 41.34 vs ELWS: 63.75

Earlyworks Co had a gross margin of 59.03% for the quarter that ended in Oct. 2024 => Durable competitive advantage

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

Earlyworks Co Gross Margin % Historical Data

The historical data trend for Earlyworks Co'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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Earlyworks Co Gross Margin % Chart

Earlyworks Co Annual Data

Trend

Apr21

Apr22

Apr23

Apr24

Gross Margin %

84.47

76.64

34.38

79.06

Earlyworks Co Semi-Annual Data
	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23	Apr24	Oct24
Gross Margin %	Get a 7-Day Free Trial			36.99	28.70	94.01	72.52	59.03

Competitive Comparison of Earlyworks Co's Gross Margin %

For the Software - Application subindustry, Earlyworks Co'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.

Earlyworks Co's Gross Margin % Distribution in the Software Industry

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

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

Earlyworks Co Gross Margin % Calculation

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

Earlyworks Co's Gross Margin for the fiscal year that ended in Apr. 2024 is calculated as

Gross Margin % (A: Apr. 2024 )	=	Gross Profit (A: Apr. 2024 )	/	Revenue (A: Apr. 2024 )
	=	0.9	/	1.165
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.165 - 0.244)	/	1.165
	=	79.06 %

Earlyworks Co's Gross Margin for the quarter that ended in Oct. 2024 is calculated as

Gross Margin % (Q: Oct. 2024 )	=	Gross Profit (Q: Oct. 2024 )	/	Revenue (Q: Oct. 2024 )
	=	0.9	/	1.501
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.501 - 0.615)	/	1.501
	=	59.03 %

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.

Earlyworks Co (NAS:ELWS) 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

Earlyworks Co had a gross margin of 59.03% for the quarter that ended in Oct. 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.

Earlyworks Co Gross Margin % Related Terms

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Earlyworks Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Earlyworks Co Ltd (NAS:ELWS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

5-7-11, Ueno, Taito-ku, Tokyo, JPN, 110-0005

Website

https://e-arly.works

Earlyworks Co Ltd is a blockchain-based technology company. It builds products, delivers services, and develops solutions based on a proprietary grid ledger system to leverage blockchain technology in various business settings, including advertisement tracking, online visitor management, and sales of non-fungible tokens. The company's customers represent a diverse range of industries, such as information technology, shipping, real estate, entertainment, cosmetics, and chemical products.