The historical rank and industry rank for FalconStor Software's Gross Margin % or its related term are showing as below:
FALC'
s Gross Margin % Range Over the Past 10 Years
Min: 72.63 Med: 82.85 Max: 87.62
Current: 85.25
During the past 13 years, the highestGross Margin % of FalconStor Software was 87.62%. The lowest was 72.63%. And the median was 82.85%.
FALC's Gross Margin % is ranked better than 90.78% of 2624
companies
in the Software industry
Industry Median: 41.67
vs FALC: 85.25
FalconStor Software had a gross margin of 83.72% for the quarter that ended in Jun. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for FalconStor Software was 0.60% per year.
FalconStor Software Gross Margin % Historical Data
The historical data trend for FalconStor Software'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 FalconStor Software's Gross Margin %
For the Software - Application subindustry, FalconStor Software'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.
FalconStor Software's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, FalconStor Software's Gross Margin % distribution charts can be found below:
* The bar in red indicates where FalconStor Software'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.
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
FalconStor Software had a gross margin of 83.72% for the quarter that ended in Jun. 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.
FalconStor Software Gross Margin % Related Terms
Thank you for viewing the detailed overview of FalconStor Software's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
FalconStor Software (FalconStor Software) Business Description
FalconStor Software Inc operates in the trusted data protection software industry. The company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing data storage and long-term retention costs. The products are offered through and supported by a worldwide network of managed service providers, systems integrators, resellers, and original equipment manufacturers. It's software products create investment protection, flexibility, and leverage of modern cloud-based technologies, through software-defined functionality that provides backup and long-term retention, and business continuity driven data replication. The company's geographical markets are the Americas, Asia Pacific, Europe, Middle East, Africa and Others.
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