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MediaZen (XKRX:279600) Gross Margin % : 14.78% (As of Mar. 2024)


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What is MediaZen Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. MediaZen's Gross Profit for the three months ended in Mar. 2024 was ₩344 Mil. MediaZen's Revenue for the three months ended in Mar. 2024 was ₩2,327 Mil. Therefore, MediaZen's Gross Margin % for the quarter that ended in Mar. 2024 was 14.78%.

Warning Sign:

MediaZen Inc gross margin has been in long-term decline. The average rate of decline per year is -28.2%.


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

XKRX:279600' s Gross Margin % Range Over the Past 10 Years
Min: 19.83   Med: 37.7   Max: 91.3
Current: 21.64


During the past 7 years, the highest Gross Margin % of MediaZen was 91.30%. The lowest was 19.83%. And the median was 37.70%.

XKRX:279600's Gross Margin % is ranked worse than
79.86% of 2627 companies
in the Software industry
Industry Median: 41.79 vs XKRX:279600: 21.64

MediaZen had a gross margin of 14.78% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for MediaZen was -28.20% per year.


MediaZen Gross Margin % Historical Data

The historical data trend for MediaZen'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.

MediaZen Gross Margin % Chart

MediaZen Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 77.98 37.70 31.56 22.11 19.83

MediaZen Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.41 15.04 19.49 34.58 14.78

Competitive Comparison of MediaZen's Gross Margin %

For the Software - Application subindustry, MediaZen'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.


MediaZen's Gross Margin % Distribution in the Software Industry

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

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



MediaZen Gross Margin % Calculation

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

MediaZen'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 )
=2528.4 / 12752.623
=(Revenue - Cost of Goods Sold) / Revenue
=(12752.623 - 10224.177) / 12752.623
=19.83 %

MediaZen'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 )
=343.9 / 2326.935
=(Revenue - Cost of Goods Sold) / Revenue
=(2326.935 - 1983.031) / 2326.935
=14.78 %

* 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.


MediaZen  (XKRX:279600) 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

MediaZen had a gross margin of 14.78% for the quarter that ended in Mar. 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.


MediaZen Gross Margin % Related Terms

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MediaZen (XKRX:279600) Business Description

Traded in Other Exchanges
N/A
Address
925, Seongnam-ro, Bundang-gu, Gyeonggi-do 41, 4th Floor, Yatop-dong, Fine Venture Building, Seongnam-si, KOR, 13496
MediaZen Inc is engaged in providing voice recognition services to automobiles and other digital devices. The company offers end to end voice system integration. It includes embedded dialogue engine, server dialogue engine, voice processing, evaluation, tuning, usability test and benchmarking test, and applications like google voice local search app, siri app, and wearable device voice recognition.

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