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M-Power Information Co (ROCO:6874) Gross Margin % : 10.22% (As of Mar. 2024)


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What is M-Power Information Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. M-Power Information Co's Gross Profit for the three months ended in Mar. 2024 was NT$71 Mil. M-Power Information Co's Revenue for the three months ended in Mar. 2024 was NT$692 Mil. Therefore, M-Power Information Co's Gross Margin % for the quarter that ended in Mar. 2024 was 10.22%.


The historical rank and industry rank for M-Power Information Co's Gross Margin % or its related term are showing as below:

ROCO:6874' s Gross Margin % Range Over the Past 10 Years
Min: 13.73   Med: 16.81   Max: 19.83
Current: 13.73


During the past 5 years, the highest Gross Margin % of M-Power Information Co was 19.83%. The lowest was 13.73%. And the median was 16.81%.

ROCO:6874's Gross Margin % is ranked worse than
89.54% of 2630 companies
in the Software industry
Industry Median: 41.72 vs ROCO:6874: 13.73

M-Power Information Co had a gross margin of 10.22% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for M-Power Information Co was 0.00% per year.


M-Power Information Co Gross Margin % Historical Data

The historical data trend for M-Power Information Co'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.

M-Power Information Co Gross Margin % Chart

M-Power Information Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
19.83 17.18 16.81 14.94 14.44

M-Power Information Co Quarterly Data
Dec19 Jun20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 11.48 11.86 19.73 20.35 10.22

Competitive Comparison of M-Power Information Co's Gross Margin %

For the Software - Application subindustry, M-Power Information Co'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.


M-Power Information Co's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, M-Power Information Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where M-Power Information Co's Gross Margin % falls into.



M-Power Information Co Gross Margin % Calculation

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

M-Power Information Co'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 )
=230.9 / 1598.779
=(Revenue - Cost of Goods Sold) / Revenue
=(1598.779 - 1367.877) / 1598.779
=14.44 %

M-Power Information Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=70.7 / 691.918
=(Revenue - Cost of Goods Sold) / Revenue
=(691.918 - 621.213) / 691.918
=10.22 %

* 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.


M-Power Information Co  (ROCO:6874) 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

M-Power Information Co had a gross margin of 10.22% 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.


M-Power Information Co Gross Margin % Related Terms

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M-Power Information Co (ROCO:6874) Business Description

Traded in Other Exchanges
N/A
Address
Renai Road, 12th Floor, No. 85, Section 4, Daan District, Taipei, TWN
M-Power Information Co Ltd is a software integration service company. It is engaged in the wholesale and retail of information software, and corresponding professional consultancy services, education and training, and technical services.

M-Power Information Co (ROCO:6874) Headlines

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