SATO Technologies (TSXV:SATO) Gross Margin % : 38.35% (As of Dec. 2023)

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What is SATO Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SATO Technologies's Gross Profit for the three months ended in Dec. 2023 was C$2.06 Mil. SATO Technologies's Revenue for the three months ended in Dec. 2023 was C$5.37 Mil. Therefore, SATO Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 38.35%.

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

TSXV:SATO' s Gross Margin % Range Over the Past 10 Years
Min: 21.95 Med: 25.7 Max: 29.45
Current: 28.88

During the past 13 years, the highest Gross Margin % of SATO Technologies was 29.45%. The lowest was 21.95%. And the median was 25.70%.

TSXV:SATO's Gross Margin % is ranked worse than
66.39% of 607 companies
in the Capital Markets industry
Industry Median: 48.61 vs TSXV:SATO: 28.88

SATO Technologies had a gross margin of 38.35% for the quarter that ended in Dec. 2023 => Competition eroding margins

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

SATO Technologies Gross Margin % Historical Data

The historical data trend for SATO Technologies'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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SATO Technologies Gross Margin % Chart

SATO Technologies Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Dec22

Dec23

Gross Margin %

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21.95

29.45

SATO Technologies Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															32.88	28.88	26.75	18.57	38.35

Competitive Comparison of SATO Technologies's Gross Margin %

For the Capital Markets subindustry, SATO Technologies'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.

SATO Technologies's Gross Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, SATO Technologies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where SATO Technologies's Gross Margin % falls into.

SATO Technologies Gross Margin % Calculation

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

SATO Technologies'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 )
	=	5.2	/	17.561
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(17.561 - 12.39)	/	17.561
	=	29.45 %

SATO Technologies's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	2.1	/	5.369
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5.369 - 3.31)	/	5.369
	=	38.35 %

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.

SATO Technologies (TSXV:SATO) 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

SATO Technologies had a gross margin of 38.35% for the quarter that ended in Dec. 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.

SATO Technologies Gross Margin % Related Terms

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SATO Technologies (TSXV:SATO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » SATO Technologies Corp (TSXV:SATO) » Definitions » Gross Margin %

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CCPUF:USA

Address

66 Wellington Street West, Suite 5300, Toronto, ON, CAN, M5K 1E6

Website

https://www.bysato.com

SATO Technologies Corp is engaged in the business of utilizing specialized equipment to solve complex computational problems to validate transactions on the Bitcoin blockchain and others. The Group receives digital assets in return for successful service and is primarily engaged in the cryptocurrency mining industry.