Gross Margin % is calculated as gross profit divided by its revenue. ISP Global's Gross Profit for the
three
months ended in Dec. 2023 was HK$24.5 Mil. ISP Global's Revenue for the
three
months ended in Dec. 2023 was HK$61.7 Mil. Therefore, ISP Global's Gross Margin % for the quarter that ended in Dec. 2023 was 39.74%.
Warning Sign:
ISP Global Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.8%.
The historical rank and industry rank for ISP Global's Gross Margin % or its related term are showing as below:
HKSE:08487'
s Gross Margin % Range Over the Past 10 Years
Min: 21.37 Med: 35.25 Max: 39.7
Current: 31.12
During the past 8 years, the highestGross Margin % of ISP Global was 39.70%. The lowest was 21.37%. And the median was 35.25%.
HKSE:08487's Gross Margin % is ranked better than 63.48% of 2440
companies
in the Hardware industry
Industry Median: 24.455
vs HKSE:08487: 31.12
ISP Global had a gross margin of 39.74% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for ISP Global was -7.80% per year.
ISP Global Gross Margin % Historical Data
The historical data trend for ISP Global'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 ISP Global's Gross Margin %
For the Communication Equipment subindustry, ISP Global'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.
ISP Global's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, ISP Global's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ISP Global'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.
ISP Global (HKSE:08487) 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
ISP Global had a gross margin of 39.74% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
ISP Global Gross Margin % Related Terms
Thank you for viewing the detailed overview of ISP Global's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ISP Global Ltd is a sound and communication services provider in Singapore. The company is engaged in the sale of sound and communication systems and related services; integrated services of sound and communication systems, with a focus on design, customization, and installation of sound and communication systems in buildings and alert alarm system services. The Group has two major business segments: (i) e-commerce operation; and (ii) sale and provision of integrated services of networking, sound and communication systems. The firm's revenue is mainly derived from Mainland China.
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