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Water Intelligence (LSE:WATR) Gross Margin % : 86.07% (As of Jun. 2023)


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What is Water Intelligence Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Water Intelligence's Gross Profit for the six months ended in Jun. 2023 was £26.36 Mil. Water Intelligence's Revenue for the six months ended in Jun. 2023 was £30.63 Mil. Therefore, Water Intelligence's Gross Margin % for the quarter that ended in Jun. 2023 was 86.07%.


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

LSE:WATR' s Gross Margin % Range Over the Past 10 Years
Min: 76.72   Med: 84.94   Max: 92.73
Current: 86.04


During the past 13 years, the highest Gross Margin % of Water Intelligence was 92.73%. The lowest was 76.72%. And the median was 84.94%.

LSE:WATR's Gross Margin % is ranked better than
91.49% of 987 companies
in the Business Services industry
Industry Median: 34.38 vs LSE:WATR: 86.04

Water Intelligence had a gross margin of 86.07% for the quarter that ended in Jun. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Water Intelligence was 1.50% per year.


Water Intelligence Gross Margin % Historical Data

The historical data trend for Water Intelligence'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.

Water Intelligence Gross Margin % Chart

Water Intelligence Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 77.74 76.99 76.72 83.56 86.46

Water Intelligence Semi-Annual Data
Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
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 81.77 85.06 86.92 86.00 86.07

Competitive Comparison of Water Intelligence's Gross Margin %

For the Specialty Business Services subindustry, Water Intelligence'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.


Water Intelligence's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Water Intelligence's Gross Margin % distribution charts can be found below:

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



Water Intelligence Gross Margin % Calculation

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

Water Intelligence's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=50.6 / 58.564
=(Revenue - Cost of Goods Sold) / Revenue
=(58.564 - 7.93) / 58.564
=86.46 %

Water Intelligence's Gross Margin for the quarter that ended in Jun. 2023 is calculated as


Gross Margin % (Q: Jun. 2023 )=Gross Profit (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=26.4 / 30.631
=(Revenue - Cost of Goods Sold) / Revenue
=(30.631 - 4.267) / 30.631
=86.07 %

* 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.


Water Intelligence  (LSE:WATR) 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

Water Intelligence had a gross margin of 86.07% for the quarter that ended in Jun. 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.


Water Intelligence Gross Margin % Related Terms

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Water Intelligence (LSE:WATR) Business Description

Traded in Other Exchanges
Address
27-28 Eastcastle Street, London, GBR, W1W 8DH
Water Intelligence PLC provides leak detection and remediation services based in the United Kingdom. The company along with its subsidiaries offers a range of solutions and products for residential, commercial, and municipal customers. It generates revenue Franchise royalty income; Franchise-related activities including product and equipment sales, business-to-business sales, and sales of franchises; United States corporate-operated locations; and International corporate-operated locations. The revenues are derived from the American leak detection business.

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