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Edge Technology (TSE:4268) Gross Margin % : 26.67% (As of Apr. 2024)


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What is Edge Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Edge Technology's Gross Profit for the three months ended in Apr. 2024 was 円194 Mil. Edge Technology's Revenue for the three months ended in Apr. 2024 was 円729 Mil. Therefore, Edge Technology's Gross Margin % for the quarter that ended in Apr. 2024 was 26.67%.


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

TSE:4268' s Gross Margin % Range Over the Past 10 Years
Min: 28.91   Med: 31.52   Max: 34.93
Current: 28.91


During the past 5 years, the highest Gross Margin % of Edge Technology was 34.93%. The lowest was 28.91%. And the median was 31.52%.

TSE:4268's Gross Margin % is not ranked
in the Software industry.
Industry Median: 41.34 vs TSE:4268: 28.91

Edge Technology had a gross margin of 26.67% for the quarter that ended in Apr. 2024 => Competition eroding margins

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


Edge Technology Gross Margin % Historical Data

The historical data trend for Edge Technology'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.

Edge Technology Gross Margin % Chart

Edge Technology Annual Data
Trend Apr20 Apr21 Apr22 Apr23 Apr24
Gross Margin %
31.27 34.93 32.89 31.52 28.91

Edge Technology Quarterly Data
Apr20 Apr21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.70 29.83 29.22 29.96 26.67

Competitive Comparison of Edge Technology's Gross Margin %

For the Software - Infrastructure subindustry, Edge Technology'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.


Edge Technology's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Edge Technology's Gross Margin % falls into.


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Edge Technology Gross Margin % Calculation

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

Edge Technology's Gross Margin for the fiscal year that ended in Apr. 2024 is calculated as

Gross Margin % (A: Apr. 2024 )=Gross Profit (A: Apr. 2024 ) / Revenue (A: Apr. 2024 )
=827.6 / 2862.618
=(Revenue - Cost of Goods Sold) / Revenue
=(2862.618 - 2035.007) / 2862.618
=28.91 %

Edge Technology's Gross Margin for the quarter that ended in Apr. 2024 is calculated as


Gross Margin % (Q: Apr. 2024 )=Gross Profit (Q: Apr. 2024 ) / Revenue (Q: Apr. 2024 )
=194.3 / 728.511
=(Revenue - Cost of Goods Sold) / Revenue
=(728.511 - 534.216) / 728.511
=26.67 %

* 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.


Edge Technology  (TSE:4268) 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

Edge Technology had a gross margin of 26.67% for the quarter that ended in Apr. 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.


Edge Technology Gross Margin % Related Terms

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Edge Technology Business Description

Traded in Other Exchanges
N/A
Address
1-32-7 Kanda Sudacho, Cress Real Estate Kanda Building 5th Floor, Tokyo, JPN
Edge Technology Inc is engaged in the AI implementation support and big data analysis consulting business.

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