Gross Margin % is calculated as gross profit divided by its revenue. Cuentas's Gross Profit for the
three
months ended in Dec. 2023 was $-0.14 Mil. Cuentas's Revenue for the
three
months ended in Dec. 2023 was $1.35 Mil. Therefore, Cuentas's Gross Margin % for the quarter that ended in Dec. 2023 was -10.40%.
The historical rank and industry rank for Cuentas's Gross Margin % or its related term are showing as below:
CUEN'
s Gross Margin % Range Over the Past 10 Years
Min: -820 Med: -1.2 Max: 20.91
Current: -16.55
During the past 13 years, the highestGross Margin % of Cuentas was 20.91%. The lowest was -820.00%. And the median was -1.20%.
CUEN's Gross Margin % is ranked worse than 97.83% of 2628
companies
in the Software industry
Industry Median: 41.71
vs CUEN: -16.55
Cuentas had a gross margin of -10.40% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Cuentas was 0.00% per year.
Cuentas Gross Margin % Historical Data
The historical data trend for Cuentas'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.
Competitive Comparison of Cuentas's Gross Margin %
For the Software - Application subindustry, Cuentas'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.
Cuentas's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Cuentas's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cuentas's Gross Margin % falls into.
* 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.
Cuentas (OTCPK:CUEN) 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
Cuentas had a gross margin of -10.40% for the quarter that ended in Dec. 2023 => 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.
Cuentas Gross Margin % Related Terms
Thank you for viewing the detailed overview of Cuentas's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cuentas Inc is a FinTech e-banking and e-commerce service provider with proprietary technology aimed at providing solutions for the underbanked and un-banked Hispanic and Latino population. The company operates in two segments: Telecommunications and General Purpose Reloadable Cards. Its services include mobile banking, online banking, prepaid debit, ACH and mobile deposits, cash remittance, peer-to-peer money transferring, and providing access to bank accounts for customers who previously could not obtain bank accounts. The proprietary Cuentas General Purpose Reloadable (GPR) Card provides holders with a digital wallet, discounts for purchases at major physical and online retailers, rewards, and the ability to purchase digital content.
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