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ECS TELECOM Co (XKRX:067010) Gross Margin % : 17.88% (As of Dec. 2024)


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What is ECS TELECOM Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ECS TELECOM Co's Gross Profit for the three months ended in Dec. 2024 was ₩3,870 Mil. ECS TELECOM Co's Revenue for the three months ended in Dec. 2024 was ₩21,645 Mil. Therefore, ECS TELECOM Co's Gross Margin % for the quarter that ended in Dec. 2024 was 17.88%.

Warning Sign:

ECS TELECOM Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -4%.


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

XKRX:067010' s Gross Margin % Range Over the Past 10 Years
Min: 17.29   Med: 21.91   Max: 25.07
Current: 17.29


During the past 13 years, the highest Gross Margin % of ECS TELECOM Co was 25.07%. The lowest was 17.29%. And the median was 21.91%.

XKRX:067010's Gross Margin % is ranked worse than
68.03% of 2415 companies
in the Hardware industry
Industry Median: 24.37 vs XKRX:067010: 17.29

ECS TELECOM Co had a gross margin of 17.88% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for ECS TELECOM Co was -4.00% per year.


ECS TELECOM Co Gross Margin % Historical Data

The historical data trend for ECS TELECOM Co'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.

ECS TELECOM Co Gross Margin % Chart

ECS TELECOM Co 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 22.93 22.92 21.78 18.21 17.58

ECS TELECOM Co 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 17.24 15.47 15.00 20.81 17.88

Competitive Comparison of ECS TELECOM Co's Gross Margin %

For the Communication Equipment subindustry, ECS TELECOM Co'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.


ECS TELECOM Co's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, ECS TELECOM Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where ECS TELECOM Co's Gross Margin % falls into.


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ECS TELECOM Co Gross Margin % Calculation

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

ECS TELECOM Co'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 )
=16141.7 / 91805.921
=(Revenue - Cost of Goods Sold) / Revenue
=(91805.921 - 75664.19) / 91805.921
=17.58 %

ECS TELECOM Co'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 )
=3870 / 21644.766
=(Revenue - Cost of Goods Sold) / Revenue
=(21644.766 - 17774.815) / 21644.766
=17.88 %

* 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.


ECS TELECOM Co  (XKRX:067010) 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

ECS TELECOM Co had a gross margin of 17.88% 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.


ECS TELECOM Co Gross Margin % Related Terms

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


ECS TELECOM Co Business Description

Traded in Other Exchanges
N/A
Address
Il-Hong Building 8, Banpo-daero 28-gil, Seocho-gu, Seoul, KOR, 06648
ECS TELECOM Co Ltd is a Korea based company operating in the field of providing Enterprise voice solutions. It is engaged in offering solutions in the business areas of System integration and consulting, Video conferencing, Network integration, CC/UC, and Total maintenance services. The organization's customers include companies from the fields of banks, insurance, public, media and education, and distribution and service.

ECS TELECOM Co Headlines

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