DXC Technology Co's gross profit for the
three
months ended in Dec. 2024 was $809 Mil. DXC Technology Co's gross profit for the trailing twelve months (TTM) ended in Dec. 2024 was $3,131 Mil.
DXC Technology Co had a gross margin of 25.09% for the quarter that ended in Dec. 2024 => Competition eroding margins
During the past 13 years, the highestGross Margin % of DXC Technology Co was 27.98%. The lowest was 20.55%. And the median was 24.01%.
Warning Sign:
DXC Technology Co gross margin has been in long-term decline. The average rate of decline per year is -3.5%.
DXC Technology Co Gross Profit Historical Data
The historical data trend for DXC Technology Co's Gross Profit 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.
Competitive Comparison of DXC Technology Co's Gross Profit
For the Information Technology Services subindustry, DXC Technology Co's Gross Profit, along with its competitors' market caps and Gross Profit 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.
DXC Technology Co's Gross Profit Distribution in the Software Industry
For the Software industry and Technology sector, DXC Technology Co's Gross Profit distribution charts can be found below:
* The bar in red indicates where DXC Technology Co's Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,131 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
DXC Technology Co (NYSE:DXC) Gross Profit 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
DXC Technology Co had a gross margin of 25.09% for the quarter that ended in Dec. 2024 => Competition eroding margins
DXC Technology Co Gross Profit Related Terms
Thank you for viewing the detailed overview of DXC Technology Co's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
DXC Technology Co is a vendor-independent IT services provider. The company's operating segment includes Global Business Services (GBS) and Global Infrastructure Services (GIS). It generates maximum revenue from the GIS segment. GIS offerings include Cloud and Security; IT Outsourcing and Modern Workplace. Geographically, it derives a majority of revenue from the Other Europe region.
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