IBO Technology Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -22.7%.
The historical rank and industry rank for IBO Technology Co's Gross Margin % or its related term are showing as below:
HKSE:02708'
s Gross Margin % Range Over the Past 10 Years
Min: 3.34 Med: 33.89 Max: 60.13
Current: 3.34
During the past 9 years, the highestGross Margin % of IBO Technology Co was 60.13%. The lowest was 3.34%. And the median was 33.89%.
HKSE:02708's Gross Margin % is ranked worse than 95.52% of 2632
companies
in the Software industry
Industry Median: 41.8
vs HKSE:02708: 3.34
IBO Technology Co had a gross margin of 3.61% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for IBO Technology Co was -22.70% per year.
IBO Technology Co Gross Margin % Historical Data
The historical data trend for IBO Technology 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.
Competitive Comparison of IBO Technology Co's Gross Margin %
For the Software - Infrastructure subindustry, IBO Technology 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.
IBO Technology Co's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, IBO Technology Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where IBO Technology Co's Gross Margin % falls into.
* 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.
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.
IBO Technology Co (HKSE:02708) 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
IBO Technology Co had a gross margin of 3.61% for the quarter that ended in Sep. 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.
IBO Technology Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of IBO Technology Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
IBO Technology Co (HKSE:02708) Business Description
IBO Technology Co Ltd is engaged in providing the Internet of Things (IoT) intelligent terminal product applications and solutions services in the People's Republic of China. The company operates in four segments. Its System integration segment provides coordination, management, and installation services. The Intelligent terminal products sales segment is involved in the sale of intelligent terminal products. Its Software development segment develops customized software. The company's System maintenance services segment renders system maintenance services. The key revenue is derived from the Intelligent terminal products sales segment. The company earns the majority of its revenue is derived from customers located in the PRC.
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