Gross Margin % is calculated as gross profit divided by its revenue. Black Box's Gross Profit for the
three
months ended in Mar. 2024 was ₹2,424 Mil. Black Box's Revenue for the
three
months ended in Mar. 2024 was ₹14,804 Mil. Therefore, Black Box's Gross Margin % for the quarter that ended in Mar. 2024 was 16.37%.
Warning Sign:
Black Box Ltd gross margin has been in long-term decline. The average rate of decline per year is -26.7%.
The historical rank and industry rank for Black Box's Gross Margin % or its related term are showing as below:
NSE:BBOX'
s Gross Margin % Range Over the Past 10 Years
Min: 10.72 Med: 37.24 Max: 53.83
Current: 13.55
During the past 13 years, the highestGross Margin % of Black Box was 53.83%. The lowest was 10.72%. And the median was 37.24%.
NSE:BBOX's Gross Margin % is ranked worse than 89.77% of 2629
companies
in the Software industry
Industry Median: 41.73
vs NSE:BBOX: 13.55
Black Box had a gross margin of 16.37% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Black Box was -26.70% per year.
Black Box Gross Margin % Historical Data
The historical data trend for Black Box'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 Black Box's Gross Margin %
For the Software - Application subindustry, Black Box'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.
Black Box's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Black Box's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Black Box'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.
Black Box (NSE:BBOX) 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
Black Box had a gross margin of 16.37% for the quarter that ended in Mar. 2024 => No sustainable 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.
Black Box Gross Margin % Related Terms
Thank you for viewing the detailed overview of Black Box's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Black Box Ltd along with its subsidiaries provides information, communications technology solutions provider, and an integrator that delivers technology-based solutions across world markets and verticals with a spectrum of applications and services. The company's operating segments are System Integration (SI); Technology Product Solution (TPS) and Others comprising of training and consulting services. It generates maximum revenue from the System Integration (SI) segment. The company exports its product to the Middle East/Africa, North America, Australia, New Zealand, Singapore, and Europe. Its solution line consists of unified communications, network infrastructure and data center, cyber security (CYBER-i), and digital transformation and applications.
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