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Polaris AI (XKRX:039980) Gross Margin % : 34.27% (As of Sep. 2024)


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What is Polaris AI Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Polaris AI's Gross Profit for the three months ended in Sep. 2024 was ₩4,507 Mil. Polaris AI's Revenue for the three months ended in Sep. 2024 was ₩13,153 Mil. Therefore, Polaris AI's Gross Margin % for the quarter that ended in Sep. 2024 was 34.27%.

Warning Sign:

Polaris AI Corp gross margin has been in long-term decline. The average rate of decline per year is -9.7%.


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

XKRX:039980' s Gross Margin % Range Over the Past 10 Years
Min: 16.38   Med: 39.17   Max: 48.73
Current: 31.62


During the past 13 years, the highest Gross Margin % of Polaris AI was 48.73%. The lowest was 16.38%. And the median was 39.17%.

XKRX:039980's Gross Margin % is ranked worse than
62.61% of 2618 companies
in the Software industry
Industry Median: 41.435 vs XKRX:039980: 31.62

Polaris AI had a gross margin of 34.27% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Polaris AI was -9.70% per year.


Polaris AI Gross Margin % Historical Data

The historical data trend for Polaris AI'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.

Polaris AI Gross Margin % Chart

Polaris AI Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.62 16.38 19.44 18.69 31.55

Polaris AI Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 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 36.89 25.12 33.11 36.84 34.27

Competitive Comparison of Polaris AI's Gross Margin %

For the Information Technology Services subindustry, Polaris AI'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.


Polaris AI's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Polaris AI's Gross Margin % falls into.



Polaris AI Gross Margin % Calculation

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

Polaris AI'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 )
=18749.6 / 59435.98
=(Revenue - Cost of Goods Sold) / Revenue
=(59435.98 - 40686.412) / 59435.98
=31.55 %

Polaris AI'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 )
=4506.9 / 13152.517
=(Revenue - Cost of Goods Sold) / Revenue
=(13152.517 - 8645.61) / 13152.517
=34.27 %

* 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.


Polaris AI  (XKRX:039980) 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

Polaris AI had a gross margin of 34.27% for the quarter that ended in Sep. 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.


Polaris AI Gross Margin % Related Terms

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Polaris AI Business Description

Traded in Other Exchanges
N/A
Address
4th floor, 19 Seoun-ro, Seocho-gu, Seocho-dong, Seocho World Building, Seoul, KOR, 06732
Polaris AI Corp is engaged in system integration (SI), IT solutions, wireless communications and IT services.

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