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Alviva Holdings (JSE:AVV) Gross Margin % : 15.08% (As of Jun. 2022)


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What is Alviva Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Alviva Holdings's Gross Profit for the six months ended in Jun. 2022 was R1,802 Mil. Alviva Holdings's Revenue for the six months ended in Jun. 2022 was R11,947 Mil. Therefore, Alviva Holdings's Gross Margin % for the quarter that ended in Jun. 2022 was 15.08%.


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


JSE:AVV's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.79
* Ranked among companies with meaningful Gross Margin % only.

Alviva Holdings had a gross margin of 15.08% for the quarter that ended in Jun. 2022 => No sustainable competitive advantage

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


Alviva Holdings Gross Margin % Historical Data

The historical data trend for Alviva Holdings'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.

Alviva Holdings Gross Margin % Chart

Alviva Holdings Annual Data
Trend Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.68 16.38 16.44 17.00 15.16

Alviva Holdings Semi-Annual Data
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.39 16.69 17.32 15.25 15.08

Competitive Comparison of Alviva Holdings's Gross Margin %

For the Information Technology Services subindustry, Alviva Holdings'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.


Alviva Holdings's Gross Margin % Distribution in the Software Industry

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

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



Alviva Holdings Gross Margin % Calculation

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

Alviva Holdings's Gross Margin for the fiscal year that ended in Jun. 2022 is calculated as

Gross Margin % (A: Jun. 2022 )=Gross Profit (A: Jun. 2022 ) / Revenue (A: Jun. 2022 )
=3552.3 / 23429.202
=(Revenue - Cost of Goods Sold) / Revenue
=(23429.202 - 19876.943) / 23429.202
=15.16 %

Alviva Holdings's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=1801.7 / 11947.385
=(Revenue - Cost of Goods Sold) / Revenue
=(11947.385 - 10145.659) / 11947.385
=15.08 %

* 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.


Alviva Holdings  (JSE:AVV) 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

Alviva Holdings had a gross margin of 15.08% for the quarter that ended in Jun. 2022 => 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.


Alviva Holdings Gross Margin % Related Terms

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Alviva Holdings (JSE:AVV) Business Description

Traded in Other Exchanges
N/A
Address
Corner of New Road and 6th Street, International business Gateway Park, P.O. Box 483, Halfway House, Midrand, Johannesburg, GT, ZAF, 1685
Alviva Holdings Ltd provides information technology and communication technology. The company's operating segment includes Information and Communication Technology (ICT) Distribution; Services and Solutions; Financial Services and Central Group Services. It generates maximum revenue from the ICT Distribution segment. ICT Distribution segment which imports ICT hardware and software and sells it into the sub-Saharan African markets. Geographically, it derives a majority of revenue from South Africa.

Alviva Holdings (JSE:AVV) Headlines

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