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Mahube Infrastructure (JSE:MHB) Gross Margin % : 85.84% (As of Aug. 2023)


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What is Mahube Infrastructure Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Mahube Infrastructure's Gross Profit for the six months ended in Aug. 2023 was R19.75 Mil. Mahube Infrastructure's Revenue for the six months ended in Aug. 2023 was R23.01 Mil. Therefore, Mahube Infrastructure's Gross Margin % for the quarter that ended in Aug. 2023 was 85.84%.

Warning Sign:

Mahube Infrastructure Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.1%.


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

JSE:MHB' s Gross Margin % Range Over the Past 10 Years
Min: 63.42   Med: 89.87   Max: 98.06
Current: 77.05


During the past 8 years, the highest Gross Margin % of Mahube Infrastructure was 98.06%. The lowest was 63.42%. And the median was 89.87%.

JSE:MHB's Gross Margin % is ranked better than
70.22% of 534 companies
in the Asset Management industry
Industry Median: 51.105 vs JSE:MHB: 77.05

Mahube Infrastructure had a gross margin of 85.84% for the quarter that ended in Aug. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Mahube Infrastructure was -5.10% per year.


Mahube Infrastructure Gross Margin % Historical Data

The historical data trend for Mahube Infrastructure'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.

Mahube Infrastructure Gross Margin % Chart

Mahube Infrastructure Annual Data
Trend Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Gross Margin %
Get a 7-Day Free Trial 86.84 83.02 90.98 89.87 63.42

Mahube Infrastructure Semi-Annual Data
Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23
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 91.04 88.35 71.84 51.89 85.84

Competitive Comparison of Mahube Infrastructure's Gross Margin %

For the Asset Management subindustry, Mahube Infrastructure'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.


Mahube Infrastructure's Gross Margin % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Mahube Infrastructure's Gross Margin % distribution charts can be found below:

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



Mahube Infrastructure Gross Margin % Calculation

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

Mahube Infrastructure's Gross Margin for the fiscal year that ended in Feb. 2023 is calculated as

Gross Margin % (A: Feb. 2023 )=Gross Profit (A: Feb. 2023 ) / Revenue (A: Feb. 2023 )
=12.1 / 19.053
=(Revenue - Cost of Goods Sold) / Revenue
=(19.053 - 6.969) / 19.053
=63.42 %

Mahube Infrastructure's Gross Margin for the quarter that ended in Aug. 2023 is calculated as


Gross Margin % (Q: Aug. 2023 )=Gross Profit (Q: Aug. 2023 ) / Revenue (Q: Aug. 2023 )
=19.8 / 23.01
=(Revenue - Cost of Goods Sold) / Revenue
=(23.01 - 3.259) / 23.01
=85.84 %

* 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.


Mahube Infrastructure  (JSE:MHB) 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

Mahube Infrastructure had a gross margin of 85.84% for the quarter that ended in Aug. 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.


Mahube Infrastructure Gross Margin % Related Terms

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Mahube Infrastructure (JSE:MHB) Business Description

Traded in Other Exchanges
N/A
Address
4 The High Street, 3rd Floor, Penthouse 5, Melrose Arch, Johannesburg, GT, ZAF, 2196
Mahube Infrastructure Ltd is an investment entity holding its investments in operational infrastructure assets. The company's business is to own infrastructure assets in the energy, transportation, and water and sanitation sectors across Southern Africa.

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