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UBSFY (Ubisoft Entertainment) Gross Margin % : 86.58% (As of Sep. 2024)


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What is Ubisoft Entertainment Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ubisoft Entertainment's Gross Profit for the six months ended in Sep. 2024 was $646 Mil. Ubisoft Entertainment's Revenue for the six months ended in Sep. 2024 was $746 Mil. Therefore, Ubisoft Entertainment's Gross Margin % for the quarter that ended in Sep. 2024 was 86.58%.


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

UBSFY' s Gross Margin % Range Over the Past 10 Years
Min: 76.97   Med: 83.5   Max: 91.13
Current: 90.36


During the past 13 years, the highest Gross Margin % of Ubisoft Entertainment was 91.13%. The lowest was 76.97%. And the median was 83.50%.

UBSFY's Gross Margin % is ranked better than
78.1% of 516 companies
in the Interactive Media industry
Industry Median: 62.185 vs UBSFY: 90.36

Ubisoft Entertainment had a gross margin of 86.58% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ubisoft Entertainment was 2.00% per year.


Ubisoft Entertainment Gross Margin % Historical Data

The historical data trend for Ubisoft Entertainment'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.

Ubisoft Entertainment Gross Margin % Chart

Ubisoft Entertainment Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 84.14 85.35 87.31 88.07 91.13

Ubisoft Entertainment Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 88.87 87.53 89.44 92.09 86.58

Competitive Comparison of Ubisoft Entertainment's Gross Margin %

For the Electronic Gaming & Multimedia subindustry, Ubisoft Entertainment'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.


Ubisoft Entertainment's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Ubisoft Entertainment's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ubisoft Entertainment's Gross Margin % falls into.


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Ubisoft Entertainment Gross Margin % Calculation

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

Ubisoft Entertainment's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=2279 / 2500.978
=(Revenue - Cost of Goods Sold) / Revenue
=(2500.978 - 221.956) / 2500.978
=91.13 %

Ubisoft Entertainment'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 )
=645.6 / 745.727
=(Revenue - Cost of Goods Sold) / Revenue
=(745.727 - 100.111) / 745.727
=86.58 %

* 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.


Ubisoft Entertainment  (OTCPK:UBSFY) 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

Ubisoft Entertainment had a gross margin of 86.58% for the quarter that ended in Sep. 2024 => Durable competitive advantage


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.


Ubisoft Entertainment Gross Margin % Related Terms

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


Ubisoft Entertainment Business Description

Address
2, Avenue Pasteur, Saint-Mande, FRA, 94160
Ubisoft develops and publishes top-quality video games for play on gaming consoles, PCs, and mobile devices. Its major franchises include Assassin's Creed, Rainbow Six, Far Cry, Just Dance, The Crew, and Skull & Bones. It also has a license to release games under the Star Wars and Avatar banners, as well as use the Tom Clancy name. The firm also holds the game streaming rights to Activision's existing catalog and any games it develops through 2038. Typically, about half of the firm's sales come from North America, and 35% from Europe. Furthermore, about 40% of sales are classified as recurring—from in-game purchases—while about 60% are nonrecurring, from the initial game sales.