GURUFOCUS.COM » STOCK LIST » Technology » Software » 4Global PLC (LSE:4GBL) » Definitions » Gross Margin %

4Global (LSE:4GBL) Gross Margin % : 59.63% (As of Sep. 2023)


View and export this data going back to 2021. Start your Free Trial

What is 4Global Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. 4Global's Gross Profit for the six months ended in Sep. 2023 was £1.04 Mil. 4Global's Revenue for the six months ended in Sep. 2023 was £1.75 Mil. Therefore, 4Global's Gross Margin % for the quarter that ended in Sep. 2023 was 59.63%.


The historical rank and industry rank for 4Global's Gross Margin % or its related term are showing as below:

LSE:4GBL' s Gross Margin % Range Over the Past 10 Years
Min: 45.42   Med: 68.2   Max: 75.61
Current: 75.61


During the past 5 years, the highest Gross Margin % of 4Global was 75.61%. The lowest was 45.42%. And the median was 68.20%.

LSE:4GBL's Gross Margin % is ranked better than
83.67% of 2639 companies
in the Software industry
Industry Median: 41.94 vs LSE:4GBL: 75.61

4Global had a gross margin of 59.63% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for 4Global was 0.00% per year.


4Global Gross Margin % Historical Data

The historical data trend for 4Global'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.

4Global Gross Margin % Chart

4Global Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
45.42 49.64 68.20 71.87 74.06

4Global Semi-Annual Data
Mar19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Gross Margin % Get a 7-Day Free Trial Premium Member Only 71.95 71.83 49.32 82.27 59.63

Competitive Comparison of 4Global's Gross Margin %

For the Software - Application subindustry, 4Global'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.


4Global's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, 4Global's Gross Margin % distribution charts can be found below:

* The bar in red indicates where 4Global's Gross Margin % falls into.



4Global Gross Margin % Calculation

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

4Global's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=4.1 / 5.586
=(Revenue - Cost of Goods Sold) / Revenue
=(5.586 - 1.449) / 5.586
=74.06 %

4Global's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=1 / 1.749
=(Revenue - Cost of Goods Sold) / Revenue
=(1.749 - 0.706) / 1.749
=59.63 %

* 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.


4Global  (LSE:4GBL) 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

4Global had a gross margin of 59.63% for the quarter that ended in Sep. 2023 => 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.


4Global Gross Margin % Related Terms

Thank you for viewing the detailed overview of 4Global's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


4Global (LSE:4GBL) Business Description

Traded in Other Exchanges
Address
566 Chiswick High Road, 5th Floor, Building 7 Chiswick Park, Chiswick, London, GBR, W4 5YG
4Global PLC is a software, data and services sport and health company. The company provides data, software and services to governments, cities and local authorities, sporting federations and activity providers, using its proprietary software and data platform: Sport Intelligence. Its focus is on helping its clients tackle the inactivity problem through data and insight to realise significant savings in health due to increase physical activity.

4Global (LSE:4GBL) Headlines

No Headlines