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Arabian Internet and Communications Services Co (SAU:7202) Gross Margin % : 26.49% (As of Sep. 2024)


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What is Arabian Internet and Communications Services Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Arabian Internet and Communications Services Co's Gross Profit for the three months ended in Sep. 2024 was ﷼729 Mil. Arabian Internet and Communications Services Co's Revenue for the three months ended in Sep. 2024 was ﷼2,753 Mil. Therefore, Arabian Internet and Communications Services Co's Gross Margin % for the quarter that ended in Sep. 2024 was 26.49%.


The historical rank and industry rank for Arabian Internet and Communications Services Co's Gross Margin % or its related term are showing as below:

SAU:7202' s Gross Margin % Range Over the Past 10 Years
Min: 20.63   Med: 23.19   Max: 23.69
Current: 22.4


During the past 4 years, the highest Gross Margin % of Arabian Internet and Communications Services Co was 23.69%. The lowest was 20.63%. And the median was 23.19%.

SAU:7202's Gross Margin % is ranked worse than
84.81% of 349 companies
in the Telecommunication Services industry
Industry Median: 49.5 vs SAU:7202: 22.40

Arabian Internet and Communications Services Co had a gross margin of 26.49% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Arabian Internet and Communications Services Co was 0.00% per year.


Arabian Internet and Communications Services Co Gross Margin % Historical Data

The historical data trend for Arabian Internet and Communications Services 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.

Arabian Internet and Communications Services Co Gross Margin % Chart

Arabian Internet and Communications Services Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Gross Margin %
20.63 23.69 22.84 23.53

Arabian Internet and Communications Services Co Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 28.47 16.18 22.06 25.11 26.49

Competitive Comparison of Arabian Internet and Communications Services Co's Gross Margin %

For the Telecom Services subindustry, Arabian Internet and Communications Services 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.


Arabian Internet and Communications Services Co's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Arabian Internet and Communications Services Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Arabian Internet and Communications Services Co's Gross Margin % falls into.



Arabian Internet and Communications Services Co Gross Margin % Calculation

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

Arabian Internet and Communications Services 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 )
=2597.6 / 11040.493
=(Revenue - Cost of Goods Sold) / Revenue
=(11040.493 - 8442.875) / 11040.493
=23.53 %

Arabian Internet and Communications Services Co's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=729.3 / 2753.159
=(Revenue - Cost of Goods Sold) / Revenue
=(2753.159 - 2023.909) / 2753.159
=26.49 %

* 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.


Arabian Internet and Communications Services Co  (SAU:7202) 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

Arabian Internet and Communications Services Co had a gross margin of 26.49% for the quarter that ended in Sep. 2024 => 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.


Arabian Internet and Communications Services Co Gross Margin % Related Terms

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Arabian Internet and Communications Services Co Business Description

Traded in Other Exchanges
N/A
Address
Olaya Street, P.O. Box 50, Riyadh, SAU, 11372
Arabian Internet and Communications Services Co is an information and communication company. The company has three segments namely Core ICT Services, IT Managed and Operational Services, and Digital Services. It derives the majority of its revenue from Core ICT Services.

Arabian Internet and Communications Services Co Headlines

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