Gross Margin % is calculated as gross profit divided by its revenue. ReadSoft AB's Gross Profit for the
three
months ended in Jun. 2014 was kr206.7 Mil. ReadSoft AB's Revenue for the
three
months ended in Jun. 2014 was kr209.3 Mil. Therefore, ReadSoft AB's Gross Margin % for the quarter that ended in Jun. 2014 was 98.76%.
The historical rank and industry rank for ReadSoft AB's Gross Margin % or its related term are showing as below:
LTS:0GQO'
s Gross Margin % Range Over the Past 10 Years
Min: 80.71 Med: 83.46 Max: 101.65
Current: 100.64
During the past 13 years, the highestGross Margin % of ReadSoft AB was 101.65%. The lowest was 80.71%. And the median was 83.46%.
LTS:0GQO's Gross Margin % is not ranked
in the Software industry.
Industry Median: 41.72
vs LTS:0GQO: 100.64
ReadSoft AB had a gross margin of 98.76% for the quarter that ended in Jun. 2014 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ReadSoft AB was 0.00% per year.
ReadSoft AB Gross Margin % Historical Data
The historical data trend for ReadSoft AB'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.
Competitive Comparison of ReadSoft AB's Gross Margin %
For the Software - Application subindustry, ReadSoft AB'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.
ReadSoft AB's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, ReadSoft AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ReadSoft AB's Gross Margin % falls into.
* 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.
ReadSoft AB (LTS:0GQO) 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
ReadSoft AB had a gross margin of 98.76% for the quarter that ended in Jun. 2014 => 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.
ReadSoft AB Gross Margin % Related Terms
Thank you for viewing the detailed overview of ReadSoft AB's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ReadSoft AB is a Sweden-based company that creates and markets software and services for document automation, processes such as data entry, information verification, document workflows, and e-voicing. The company operates in over 16 countries worldwide, with partnerships in an additional 70. The company offers solutions primarily for industries such as banking, manufacturing, service bureaus, market research, insurance, government, and medical. Major customers include IKEA, Audi, Porsche, Yves Rocher, Swedish Tax, DaimlerChrysler, HSBS Bank, Avon, Bosch, London Underground, New York Transit, Toyota, Volvo, Monoprix, Ericsson, and ING. The company is headquartered in Helsingborg, Sweden. The company offers ReadSoft DOCUMENTS, a complete software platform for document automation. The product incorporates five Automation Areas: Capture, capturing the information in any format and making it ready for electronic processing; Understand, enabling the computer to read, sort, interpret, extract, and index documents electronically; Manage, providing customers with control of electronic documents, including the verification and quality control with archiving and monitoring capabilities; Integrate, integration with the business software; and Interchange, Electronic Data Interchange. Capabilities within each Automation Area are customized to the needs of the customer, and solutions can be expanded to include any required extra capabilities. Also, this software can be integrated with systems such as SAP and Oracle E-Business Suite, Intentia, and IFS. ReadSoft business solutions for specific areas include: ReadSoft Documents for Mailrooms, Documents for EDI, Documents for Invoices, and Documents for Forms. Additionally, the company offers Professional Services such as project management and customization, Solution Optimization, Training, and Technical Support.
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