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Daou Technology (XKRX:023590) Gross Margin % : 11.47% (As of Dec. 2024)


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What is Daou Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Daou Technology's Gross Profit for the three months ended in Dec. 2024 was ₩428,528 Mil. Daou Technology's Revenue for the three months ended in Dec. 2024 was ₩3,736,449 Mil. Therefore, Daou Technology's Gross Margin % for the quarter that ended in Dec. 2024 was 11.47%.

Warning Sign:

Daou Technology Inc gross margin has been in long-term decline. The average rate of decline per year is -18.1%.


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

XKRX:023590' s Gross Margin % Range Over the Past 10 Years
Min: 12.48   Med: 30.87   Max: 45.33
Current: 16.62


During the past 13 years, the highest Gross Margin % of Daou Technology was 45.33%. The lowest was 12.48%. And the median was 30.87%.

XKRX:023590's Gross Margin % is ranked worse than
85.81% of 2643 companies
in the Software industry
Industry Median: 41.42 vs XKRX:023590: 16.62

Daou Technology had a gross margin of 11.47% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Daou Technology was -18.10% per year.


Daou Technology Gross Margin % Historical Data

The historical data trend for Daou 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.

Daou Technology Gross Margin % Chart

Daou Technology Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.39 30.34 14.19 12.48 16.62

Daou Technology Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -4.93 19.28 21.63 16.67 11.47

Competitive Comparison of Daou Technology's Gross Margin %

For the Information Technology Services subindustry, Daou 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.


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

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

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


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Daou Technology Gross Margin % Calculation

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

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

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=1932353.6 / 11625798.456
=(Revenue - Cost of Goods Sold) / Revenue
=(11625798.456 - 9693444.812) / 11625798.456
=16.62 %

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


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=428528.2 / 3736448.897
=(Revenue - Cost of Goods Sold) / Revenue
=(3736448.897 - 3307920.692) / 3736448.897
=11.47 %

* 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.


Daou Technology  (XKRX:023590) 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

Daou Technology had a gross margin of 11.47% for the quarter that ended in Dec. 2024 => No sustainable 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.


Daou Technology Gross Margin % Related Terms

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Daou Technology Business Description

Traded in Other Exchanges
N/A
Address
81, Digital Valley-ro, 6th Floor, Dow Digital Square, Gyeonggi-do, Yongin-si, KOR, 16878
Daou Technology Inc is a provider of IT products and solutions. Its business is divided into marketing communication, Business infrastructure, Enterprise solutions, Commerce and IT outsourcing business divisions. It develops and promotes brands such as Terrace mail, Unicro, Enfax, Citrix, etc. The firm mainly operates in Korea Japan China Indonesia and France.

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