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Nexcom AS (OCSE:NEXCOM) Gross Margin % : 98.36% (As of Dec. 2024)


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What is Nexcom AS Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nexcom AS's Gross Profit for the three months ended in Dec. 2024 was kr4.15 Mil. Nexcom AS's Revenue for the three months ended in Dec. 2024 was kr4.21 Mil. Therefore, Nexcom AS's Gross Margin % for the quarter that ended in Dec. 2024 was 98.36%.


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

OCSE:NEXCOM' s Gross Margin % Range Over the Past 10 Years
Min: 12.42   Med: 38.96   Max: 42.9
Current: 35.38


During the past 9 years, the highest Gross Margin % of Nexcom AS was 42.90%. The lowest was 12.42%. And the median was 38.96%.

OCSE:NEXCOM's Gross Margin % is ranked worse than
57.89% of 2643 companies
in the Software industry
Industry Median: 41.42 vs OCSE:NEXCOM: 35.38

Nexcom AS had a gross margin of 98.36% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nexcom AS was 0.00% per year.


Nexcom AS Gross Margin % Historical Data

The historical data trend for Nexcom AS'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.

Nexcom AS Gross Margin % Chart

Nexcom AS Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only - 42.53 12.42 42.90 35.38

Nexcom AS Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 92.80 -32.00 2.04 -7.27 98.36

Competitive Comparison of Nexcom AS's Gross Margin %

For the Software - Application subindustry, Nexcom AS'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.


Nexcom AS's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Nexcom AS's Gross Margin % falls into.


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Nexcom AS Gross Margin % Calculation

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

Nexcom AS's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=3.5 / 9.901
=(Revenue - Cost of Goods Sold) / Revenue
=(9.901 - 6.398) / 9.901
=35.38 %

Nexcom AS's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=4.1 / 4.214
=(Revenue - Cost of Goods Sold) / Revenue
=(4.214 - 0.069000000000001) / 4.214
=98.36 %

* 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.


Nexcom AS  (OCSE:NEXCOM) 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

Nexcom AS had a gross margin of 98.36% for the quarter that ended in Dec. 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.


Nexcom AS Gross Margin % Related Terms

Thank you for viewing the detailed overview of Nexcom AS's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Nexcom AS Business Description

Traded in Other Exchanges
Address
Toldbodgade 59B, Copenhagen K, DNK, 1253
Nexcom AS is the developer of information technology solutions for optimizing customer service functions and improving end-customer satisfaction. It offers digital process optimization, digital workflow, and interaction AI services. Nexcom operates in Workflow automation software. Its products include eTray, a software system for automated handling of workflows and tasks, and RevealCX, a software system for improving customer contact in service centers, RevealCX Boost is an AI-based add-on to RevealCX.

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