Gross Margin % is calculated as gross profit divided by its revenue. Usio's Gross Profit for the
three
months ended in Dec. 2023 was $4.49 Mil. Usio's Revenue for the
three
months ended in Dec. 2023 was $19.36 Mil. Therefore, Usio's Gross Margin % for the quarter that ended in Dec. 2023 was 23.20%.
The historical rank and industry rank for Usio's Gross Margin % or its related term are showing as below:
USIO'
s Gross Margin % Range Over the Past 10 Years
Min: 21.02 Med: 24.06 Max: 34.51
Current: 22.52
During the past 13 years, the highestGross Margin % of Usio was 34.51%. The lowest was 21.02%. And the median was 24.06%.
USIO's Gross Margin % is ranked worse than 77.75% of 2629
companies
in the Software industry
Industry Median: 41.73
vs USIO: 22.52
Usio had a gross margin of 23.20% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Usio was 0.40% per year.
Usio Gross Margin % Historical Data
The historical data trend for Usio'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.
For the Software - Infrastructure subindustry, Usio'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.
Usio's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Usio's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Usio'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.
Usio (NAS:USIO) 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
Usio had a gross margin of 23.20% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
Usio Gross Margin % Related Terms
Thank you for viewing the detailed overview of Usio's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Usio Inc is a United States-based company that provides integrated electronic payment services, including credit and debit card-based processing services and transaction processing via the Automated Clearing House, or ACH network to billers and retailers. The Company also has an additional wholly-owned subsidiary, Usio Output Solutions, Inc., which is the entity for the Output Solutions operations.
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