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Sword Group (LTS:0MN5) Gross Margin % : 51.17% (As of Jun. 2024)


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What is Sword Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Sword Group's Gross Profit for the six months ended in Jun. 2024 was €80.3 Mil. Sword Group's Revenue for the six months ended in Jun. 2024 was €156.9 Mil. Therefore, Sword Group's Gross Margin % for the quarter that ended in Jun. 2024 was 51.17%.

Warning Sign:

Sword Group gross margin has been in long-term decline. The average rate of decline per year is -6.7%.


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

LTS:0MN5' s Gross Margin % Range Over the Past 10 Years
Min: 42.37   Med: 53.57   Max: 58.28
Current: 43.14


During the past 13 years, the highest Gross Margin % of Sword Group was 58.28%. The lowest was 42.37%. And the median was 53.57%.

LTS:0MN5's Gross Margin % is ranked better than
51.64% of 2618 companies
in the Software industry
Industry Median: 41.435 vs LTS:0MN5: 43.14

Sword Group had a gross margin of 51.17% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Sword Group was -6.70% per year.


Sword Group Gross Margin % Historical Data

The historical data trend for Sword Group'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.

Sword Group Gross Margin % Chart

Sword Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 58.08 57.19 49.18 46.54 42.37

Sword Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 46.71 46.39 50.25 34.26 51.17

Competitive Comparison of Sword Group's Gross Margin %

For the Software - Application subindustry, Sword Group'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.


Sword Group's Gross Margin % Distribution in the Software Industry

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

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



Sword Group Gross Margin % Calculation

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

Sword Group's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=122.1 / 288.128
=(Revenue - Cost of Goods Sold) / Revenue
=(288.128 - 166.043) / 288.128
=42.37 %

Sword Group's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=80.3 / 156.889
=(Revenue - Cost of Goods Sold) / Revenue
=(156.889 - 76.602) / 156.889
=51.17 %

* 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.


Sword Group  (LTS:0MN5) 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

Sword Group had a gross margin of 51.17% for the quarter that ended in Jun. 2024 => 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.


Sword Group Gross Margin % Related Terms

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Sword Group Business Description

Traded in Other Exchanges
Address
2, rue d’Arlon, Windhof, LUX, L-8399
Sword Group is a computer engineering services company which provides consulting, services and software. The firm's main business segments are IT Services and Software. These segments encompass information and content engineering systems integration, targeting of regulated markets, compliance management, software for risk and compliance, document and project management. The firm generates revenues mainly from consultancy and engineering services and sale of software licenses. Its targeted markets are institutions and government authorities, healthcare, banking and insurance, intellectual property and sports federations.

Sword Group Headlines

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