Next Digital (Next Digital) Gross Margin % : 23.17% (As of Sep. 2020)

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What is Next Digital Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Next Digital's Gross Profit for the six months ended in Sep. 2020 was $17.03 Mil. Next Digital's Revenue for the six months ended in Sep. 2020 was $73.48 Mil. Therefore, Next Digital's Gross Margin % for the quarter that ended in Sep. 2020 was 23.17%.

Warning Sign:

Next Digital Ltd gross margin has been in long term decline. The average rate of decline per year is -22.2%.

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

NXMDF' s Gross Margin % Range Over the Past 10 Years
Min: 11.09 Med: 34.84 Max: 41.26
Current: 19.59

During the past 13 years, the highest Gross Margin % of Next Digital was 41.26%. The lowest was 11.09%. And the median was 34.84%.

NXMDF's Gross Margin % is not ranked
in the Media - Diversified industry.
Industry Median: 38.36 vs NXMDF: 19.59

Next Digital had a gross margin of 23.17% for the quarter that ended in Sep. 2020 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Next Digital was -22.20% per year.

Next Digital Gross Margin % Historical Data

The historical data trend for Next Digital'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.

Next Digital Gross Margin % Chart

Next Digital Annual Data

Trend

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Gross Margin %

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38.07

30.72

23.87

17.79

11.09

Next Digital Semi-Annual Data
	Mar11	Sep11	Mar12	Sep12	Mar13	Sep13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20
Gross Margin %	Get a 7-Day Free Trial															15.22	20.43	5.57	16.19	23.17

Competitive Comparison of Next Digital's Gross Margin %

For the Publishing subindustry, Next Digital'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.

Next Digital's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Next Digital's Gross Margin % distribution charts can be found below:

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

Next Digital Gross Margin % Calculation

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

Next Digital's Gross Margin for the fiscal year that ended in Mar. 2020 is calculated as

Gross Margin % (A: Mar. 2020 )	=	Gross Profit (A: Mar. 2020 )	/	Revenue (A: Mar. 2020 )
	=	16.5	/	149.165
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(149.165 - 132.617)	/	149.165
	=	11.09 %

Next Digital's Gross Margin for the quarter that ended in Sep. 2020 is calculated as

Gross Margin % (Q: Sep. 2020 )	=	Gross Profit (Q: Sep. 2020 )	/	Revenue (Q: Sep. 2020 )
	=	17	/	73.48
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(73.48 - 56.453)	/	73.48
	=	23.17 %

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.

Next Digital (GREY:NXMDF) 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

Next Digital had a gross margin of 23.17% for the quarter that ended in Sep. 2020 => Competition eroding margins

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.

Next Digital Gross Margin % Related Terms

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Next Digital (Next Digital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Next Digital Ltd (GREY:NXMDF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

8 Chun Ying Street, 1st Floor, Tseung Kwan O Industrial Estate, New Territories, Tseung Kwan O, Hong Kong, HKG

Website

http://www.nextdigital.com.hk

Next Digital Ltd is engaged in the print media business. Business activity of the firm is operated by the Digital Businesses and Print Business segment. The Digital Business segment includes Internet advertising, Internet subscription, content provision, and the development of mobile games and apps. The Print Business segment which derives majority revenue relates to the sale of newspapers, books and magazines and provision of newspapers, books and magazines printing and advertising services. Geographically, it operates in Hong Kong, Taiwan, and Other countries out of which Hong Kong accounts for the majority revenue.

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