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Neogrid Participacoes (BSP:NGRD3) Gross Margin % : 68.17% (As of Dec. 2023)


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What is Neogrid Participacoes Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Neogrid Participacoes's Gross Profit for the three months ended in Dec. 2023 was R$45.8 Mil. Neogrid Participacoes's Revenue for the three months ended in Dec. 2023 was R$67.3 Mil. Therefore, Neogrid Participacoes's Gross Margin % for the quarter that ended in Dec. 2023 was 68.17%.

Warning Sign:

Neogrid Participacoes SA gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


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

BSP:NGRD3' s Gross Margin % Range Over the Past 10 Years
Min: 60.92   Med: 65.43   Max: 70.08
Current: 64.37


During the past 9 years, the highest Gross Margin % of Neogrid Participacoes was 70.08%. The lowest was 60.92%. And the median was 65.43%.

BSP:NGRD3's Gross Margin % is ranked better than
72.71% of 2624 companies
in the Software industry
Industry Median: 41.67 vs BSP:NGRD3: 64.37

Neogrid Participacoes had a gross margin of 68.17% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Neogrid Participacoes was -1.60% per year.


Neogrid Participacoes Gross Margin % Historical Data

The historical data trend for Neogrid Participacoes'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.

Neogrid Participacoes Gross Margin % Chart

Neogrid Participacoes Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 70.08 65.36 66.53 63.88 64.36

Neogrid Participacoes Quarterly Data
Dec16 Dec17 Dec18 Sep19 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 64.54 62.31 63.66 63.36 68.17

Competitive Comparison of Neogrid Participacoes's Gross Margin %

For the Software - Application subindustry, Neogrid Participacoes'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.


Neogrid Participacoes's Gross Margin % Distribution in the Software Industry

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

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



Neogrid Participacoes Gross Margin % Calculation

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

Neogrid Participacoes'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 )
=172.7 / 268.322
=(Revenue - Cost of Goods Sold) / Revenue
=(268.322 - 95.617) / 268.322
=64.36 %

Neogrid Participacoes's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=45.8 / 67.259
=(Revenue - Cost of Goods Sold) / Revenue
=(67.259 - 21.411) / 67.259
=68.17 %

* 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.


Neogrid Participacoes  (BSP:NGRD3) 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

Neogrid Participacoes had a gross margin of 68.17% for the quarter that ended in Dec. 2023 => Durable 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.


Neogrid Participacoes Gross Margin % Related Terms

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


Neogrid Participacoes (BSP:NGRD3) Business Description

Traded in Other Exchanges
N/A
Address
AV. Santos Dumont, 935, Santo Antonio, Joninville, SC, BRA, 89218-105
Neogrid Participacoes SA is engaged in investing in other companies or partnerships, businesses and undertakings of any nature. The company is focused on Software as a Service (SaaS), data and technology that solves key challenges for the supply chain. With solutions that integrate and synchronize operations of manufacturers, distributors, and retailers, it ensures that products are well distributed, sized and allocated. increasing the efficiency of customers, reducing the high costs related to waste and inventory shortages and excesses and freeing up working capital. Offering SaaS solutions is the primary source of revenue generation through subscription to the Neogrid solution platform.

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