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XBP Europe Holdings (XBP Europe Holdings) Gross Margin % : 24.62% (As of Mar. 2024)


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What is XBP Europe Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. XBP Europe Holdings's Gross Profit for the three months ended in Mar. 2024 was $9.9 Mil. XBP Europe Holdings's Revenue for the three months ended in Mar. 2024 was $40.4 Mil. Therefore, XBP Europe Holdings's Gross Margin % for the quarter that ended in Mar. 2024 was 24.62%.


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

XBP' s Gross Margin % Range Over the Past 10 Years
Min: 19.33   Med: 20.17   Max: 24.21
Current: 24.08


During the past 5 years, the highest Gross Margin % of XBP Europe Holdings was 24.21%. The lowest was 19.33%. And the median was 20.17%.

XBP's Gross Margin % is ranked worse than
74.97% of 2629 companies
in the Software industry
Industry Median: 41.73 vs XBP: 24.08

XBP Europe Holdings had a gross margin of 24.62% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for XBP Europe Holdings was 0.00% per year.


XBP Europe Holdings Gross Margin % Historical Data

The historical data trend for XBP Europe Holdings'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.

XBP Europe Holdings Gross Margin % Chart

XBP Europe Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
20.17 19.33 19.87 24.21 23.44

XBP Europe Holdings Quarterly Data
Dec19 Dec20 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.10 27.59 22.03 21.93 24.62

Competitive Comparison of XBP Europe Holdings's Gross Margin %

For the Software - Infrastructure subindustry, XBP Europe Holdings'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.


XBP Europe Holdings's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where XBP Europe Holdings's Gross Margin % falls into.



XBP Europe Holdings Gross Margin % Calculation

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

XBP Europe Holdings'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 )
=39 / 166.57
=(Revenue - Cost of Goods Sold) / Revenue
=(166.57 - 127.532) / 166.57
=23.44 %

XBP Europe Holdings's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=9.9 / 40.35
=(Revenue - Cost of Goods Sold) / Revenue
=(40.35 - 30.414) / 40.35
=24.62 %

* 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.


XBP Europe Holdings  (NAS:XBP) 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

XBP Europe Holdings had a gross margin of 24.62% for the quarter that ended in Mar. 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.


XBP Europe Holdings Gross Margin % Related Terms

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XBP Europe Holdings (XBP Europe Holdings) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
2701 East Grauwyler Road, Irving, TX, USA, 75061
XBP Europe Holdings Inc is a pan-European integrator of bills, payments and related solutions and services seeking to enable the digital transformation of its more than 2,000 clients. The company's name - XBP stands for exchange for bills and payments and reflects the company's strategy to connect buyers and suppliers, across industries, including banking, healthcare, insurance, utilities and the public sector, to optimize clients' bills and payments and related digitization processes. The company provides business process management solutions with proprietary software suites and deep domain expertise, serving as a technology and services partner for its clients. Its cloud-based structure enables it to deploy its solutions across the European market, the Middle East, and Africa.