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Orient Telecoms (LSE:ORNT) Gross Margin % : 90.09% (As of Sep. 2023)


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What is Orient Telecoms Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Orient Telecoms's Gross Profit for the six months ended in Sep. 2023 was £0.19 Mil. Orient Telecoms's Revenue for the six months ended in Sep. 2023 was £0.21 Mil. Therefore, Orient Telecoms's Gross Margin % for the quarter that ended in Sep. 2023 was 90.09%.


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

LSE:ORNT' s Gross Margin % Range Over the Past 10 Years
Min: 65.75   Med: 68.72   Max: 91.17
Current: 91.17


During the past 7 years, the highest Gross Margin % of Orient Telecoms was 91.17%. The lowest was 65.75%. And the median was 68.72%.

LSE:ORNT's Gross Margin % is ranked better than
96.3% of 351 companies
in the Telecommunication Services industry
Industry Median: 49.84 vs LSE:ORNT: 91.17

Orient Telecoms had a gross margin of 90.09% for the quarter that ended in Sep. 2023 => Durable competitive advantage

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


Orient Telecoms Gross Margin % Historical Data

The historical data trend for Orient Telecoms'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.

Orient Telecoms Gross Margin % Chart

Orient Telecoms Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial 65.75 68.72 65.80 77.78 89.85

Orient Telecoms Semi-Annual Data
Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 69.63 93.72 86.70 92.00 90.09

Competitive Comparison of Orient Telecoms's Gross Margin %

For the Telecom Services subindustry, Orient Telecoms'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.


Orient Telecoms's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Orient Telecoms's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Orient Telecoms's Gross Margin % falls into.



Orient Telecoms Gross Margin % Calculation

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

Orient Telecoms'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 )
=0.4 / 0.463
=(Revenue - Cost of Goods Sold) / Revenue
=(0.463 - 0.047) / 0.463
=89.85 %

Orient Telecoms'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 )
=0.2 / 0.212
=(Revenue - Cost of Goods Sold) / Revenue
=(0.212 - 0.021) / 0.212
=90.09 %

* 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.


Orient Telecoms  (LSE:ORNT) 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

Orient Telecoms had a gross margin of 90.09% 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.


Orient Telecoms Gross Margin % Related Terms

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Orient Telecoms (LSE:ORNT) Business Description

Traded in Other Exchanges
N/A
Address
Jalan Stesen Sentral 5, Suite 2B-25-1, 25th Floor, Plaza Sentral, Block 2B, Kuala Lumpur, SGR, MYS, 50470
Orient Telecoms PLC is a company that provides telecommunication services using the network infrastructure owned by other network operators to enable cost-effective and rapid connectivity to large bandwidth consumers initially in Malaysia and subsequently within other Southeast Asian countries. It operates in a highly competitive and saturated market as the company is not involved in building its own network infrastructure which would require significant capital expenditure.

Orient Telecoms (LSE:ORNT) Headlines

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