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Horizon Educational co (SAU:9603) Gross Margin % : 37.82% (As of Jun. 2024)


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What is Horizon Educational co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Horizon Educational co's Gross Profit for the six months ended in Jun. 2024 was ﷼16.19 Mil. Horizon Educational co's Revenue for the six months ended in Jun. 2024 was ﷼42.80 Mil. Therefore, Horizon Educational co's Gross Margin % for the quarter that ended in Jun. 2024 was 37.82%.


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

SAU:9603' s Gross Margin % Range Over the Past 10 Years
Min: 37.82   Med: 37.91   Max: 38
Current: 37.82


During the past 2 years, the highest Gross Margin % of Horizon Educational co was 38.00%. The lowest was 37.82%. And the median was 37.91%.

SAU:9603's Gross Margin % is ranked worse than
66.93% of 251 companies
in the Education industry
Industry Median: 48.46 vs SAU:9603: 37.82

Horizon Educational co had a gross margin of 37.82% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Horizon Educational co was 0.00% per year.


Horizon Educational co Gross Margin % Historical Data

The historical data trend for Horizon Educational 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.

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Horizon Educational co Gross Margin % Chart

Horizon Educational co Annual Data
Trend Jun23 Jun24
Gross Margin %
38.00 37.82

Horizon Educational co Semi-Annual Data
Jun23 Jun24
Gross Margin % 38.00 37.82

Competitive Comparison of Horizon Educational co's Gross Margin %

For the Education & Training Services subindustry, Horizon Educational 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.


Horizon Educational co's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Horizon Educational co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Horizon Educational co's Gross Margin % falls into.



Horizon Educational co Gross Margin % Calculation

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

Horizon Educational co's Gross Margin for the fiscal year that ended in Jun. 2024 is calculated as

Gross Margin % (A: Jun. 2024 )=Gross Profit (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=16.2 / 42.803
=(Revenue - Cost of Goods Sold) / Revenue
=(42.803 - 26.613) / 42.803
=37.82 %

Horizon Educational co's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=16.2 / 42.803
=(Revenue - Cost of Goods Sold) / Revenue
=(42.803 - 26.613) / 42.803
=37.82 %

* 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.


Horizon Educational co  (SAU:9603) 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

Horizon Educational co had a gross margin of 37.82% for the quarter that ended in Jun. 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.


Horizon Educational co Gross Margin % Related Terms

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Horizon Educational co Business Description

Traded in Other Exchanges
N/A
Address
7212 Fujairah Street, P.O. Box 67266, Al-Wurud District 3833, Riyadh, SAU, 12252
Horizon Educational co is an education-providing company. The company's activities are represented in pre-school education, kindergartens, Primary education for students using an international curriculum, Intermediate education for students with an international curriculum, and Secondary education for students using an international curriculum.

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