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Tracsis (LSE:TRCS) Gross Margin % : 56.31% (As of Jan. 2025)


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What is Tracsis Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tracsis's Gross Profit for the six months ended in Jan. 2025 was £20.45 Mil. Tracsis's Revenue for the six months ended in Jan. 2025 was £36.31 Mil. Therefore, Tracsis's Gross Margin % for the quarter that ended in Jan. 2025 was 56.31%.

Warning Sign:

Tracsis PLC gross margin has been in long-term decline. The average rate of decline per year is -1.4%.


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

LSE:TRCS' s Gross Margin % Range Over the Past 10 Years
Min: 54.98   Med: 60.46   Max: 69.3
Current: 54.98


During the past 13 years, the highest Gross Margin % of Tracsis was 69.30%. The lowest was 54.98%. And the median was 60.46%.

LSE:TRCS's Gross Margin % is ranked better than
64.73% of 2648 companies
in the Software industry
Industry Median: 41.385 vs LSE:TRCS: 54.98

Tracsis had a gross margin of 56.31% for the quarter that ended in Jan. 2025 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tracsis was -1.40% per year.


Tracsis Gross Margin % Historical Data

The historical data trend for Tracsis'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.

Tracsis Gross Margin % Chart

Tracsis Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 65.01 69.30 61.46 60.90 56.79

Tracsis Semi-Annual Data
Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25
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 62.99 58.98 60.31 53.90 56.31

Competitive Comparison of Tracsis's Gross Margin %

For the Software - Application subindustry, Tracsis'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.


Tracsis's Gross Margin % Distribution in the Software Industry

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

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


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Tracsis Gross Margin % Calculation

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

Tracsis's Gross Margin for the fiscal year that ended in Jul. 2024 is calculated as

Gross Margin % (A: Jul. 2024 )=Gross Profit (A: Jul. 2024 ) / Revenue (A: Jul. 2024 )
=46 / 81.022
=(Revenue - Cost of Goods Sold) / Revenue
=(81.022 - 35.009) / 81.022
=56.79 %

Tracsis's Gross Margin for the quarter that ended in Jan. 2025 is calculated as


Gross Margin % (Q: Jan. 2025 )=Gross Profit (Q: Jan. 2025 ) / Revenue (Q: Jan. 2025 )
=20.4 / 36.308
=(Revenue - Cost of Goods Sold) / Revenue
=(36.308 - 15.863) / 36.308
=56.31 %

* 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.


Tracsis  (LSE:TRCS) 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

Tracsis had a gross margin of 56.31% for the quarter that ended in Jan. 2025 => 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.


Tracsis Gross Margin % Related Terms

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


Tracsis Business Description

Traded in Other Exchanges
Address
Discovery Way, Nexus, Leeds, GBR, LS2 3AA
Tracsis PLC is engaged in the business of software development and consultancy for the rail industry. It is organized into two main business segments: Rail Technology and Services and Data, Analytics, Consultancy & Events. The Rail Technology and Services division includes software, consultancy, and remote condition monitoring technology and also includes Ontrac. The Data, Analytics, Consultancy & Events division which derives majority revenue, focuses on data capture and analytics, geographic information systems, earth observation, consultancy and event traffic management within a range of transport and pedestrian rich environments. The company currently operates in three geographical markets: the United Kingdom, Ireland, Rest of Europe, North America, and Rest of the world.

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