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Synertone Communication (Synertone Communication) Gross Margin % : 37.61% (As of Sep. 2023)


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What is Synertone Communication Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Synertone Communication's Gross Profit for the six months ended in Sep. 2023 was $0.82 Mil. Synertone Communication's Revenue for the six months ended in Sep. 2023 was $2.19 Mil. Therefore, Synertone Communication's Gross Margin % for the quarter that ended in Sep. 2023 was 37.61%.

Warning Sign:

Synertone Communication Corp gross margin has been in long-term decline. The average rate of decline per year is -16.5%.


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

SYWTF' s Gross Margin % Range Over the Past 10 Years
Min: -10.46   Med: 28.98   Max: 52.86
Current: 20.98


During the past 13 years, the highest Gross Margin % of Synertone Communication was 52.86%. The lowest was -10.46%. And the median was 28.98%.

SYWTF's Gross Margin % is ranked worse than
58.24% of 2440 companies
in the Hardware industry
Industry Median: 24.455 vs SYWTF: 20.98

Synertone Communication had a gross margin of 37.61% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Synertone Communication was -16.50% per year.


Synertone Communication Gross Margin % Historical Data

The historical data trend for Synertone Communication'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.

Synertone Communication Gross Margin % Chart

Synertone Communication Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.94 36.98 25.49 20.09 14.78

Synertone Communication Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 28.91 15.35 16.30 14.07 37.61

Competitive Comparison of Synertone Communication's Gross Margin %

For the Communication Equipment subindustry, Synertone Communication'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.


Synertone Communication's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Synertone Communication's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Synertone Communication's Gross Margin % falls into.



Synertone Communication Gross Margin % Calculation

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

Synertone Communication's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=1.1 / 7.713
=(Revenue - Cost of Goods Sold) / Revenue
=(7.713 - 6.573) / 7.713
=14.78 %

Synertone Communication's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=0.8 / 2.188
=(Revenue - Cost of Goods Sold) / Revenue
=(2.188 - 1.365) / 2.188
=37.61 %

* 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.


Synertone Communication  (GREY:SYWTF) 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

Synertone Communication had a gross margin of 37.61% for the quarter that ended in Sep. 2023 => 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.


Synertone Communication Gross Margin % Related Terms

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


Synertone Communication (Synertone Communication) Business Description

Traded in Other Exchanges
Address
66 Mody Road, Room 1012, 10th Floor, Tsim Sha Tsui Centre, Kowloon, Hong Kong, HKG
Synertone Communication Corp is an investment holding company. The company's operating segments include Building intelligence, Control system, and Data Centre. It generates maximum revenue from the Building intelligence segment which includes the provision of video intercom systems and security alarm solutions for residential complexes; and smart home automation systems for new and existing households. Its Control System segment includes the provision of automation hardware and software products, information systems platforms, as well as the industrial and monitoring and scheduling management system solutions for the municipal utility industry. The Data Centre segment includes rental and maintenance services of computer equipment and machines and other related services.

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