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Digerati Technologies (Digerati Technologies) Gross Margin % : 64.84% (As of Jan. 2024)


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What is Digerati Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Digerati Technologies's Gross Profit for the three months ended in Jan. 2024 was $4.91 Mil. Digerati Technologies's Revenue for the three months ended in Jan. 2024 was $7.57 Mil. Therefore, Digerati Technologies's Gross Margin % for the quarter that ended in Jan. 2024 was 64.84%.


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

DTGI' s Gross Margin % Range Over the Past 10 Years
Min: 8.76   Med: 48.57   Max: 65.3
Current: 65.3


During the past 13 years, the highest Gross Margin % of Digerati Technologies was 65.30%. The lowest was 8.76%. And the median was 48.57%.

DTGI's Gross Margin % is ranked better than
74.15% of 352 companies
in the Telecommunication Services industry
Industry Median: 49.105 vs DTGI: 65.30

Digerati Technologies had a gross margin of 64.84% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Digerati Technologies was 7.00% per year.


Digerati Technologies Gross Margin % Historical Data

The historical data trend for Digerati Technologies'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.

Digerati Technologies Gross Margin % Chart

Digerati Technologies Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 48.21 51.66 58.64 61.31 64.31

Digerati Technologies Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 62.62 63.26 66.45 66.67 64.84

Competitive Comparison of Digerati Technologies's Gross Margin %

For the Telecom Services subindustry, Digerati Technologies'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.


Digerati Technologies's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Digerati Technologies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Digerati Technologies's Gross Margin % falls into.



Digerati Technologies Gross Margin % Calculation

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

Digerati Technologies's Gross Margin for the fiscal year that ended in Jul. 2023 is calculated as

Gross Margin % (A: Jul. 2023 )=Gross Profit (A: Jul. 2023 ) / Revenue (A: Jul. 2023 )
=20.3 / 31.623
=(Revenue - Cost of Goods Sold) / Revenue
=(31.623 - 11.286) / 31.623
=64.31 %

Digerati Technologies's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=4.9 / 7.565
=(Revenue - Cost of Goods Sold) / Revenue
=(7.565 - 2.66) / 7.565
=64.84 %

* 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.


Digerati Technologies  (OTCPK:DTGI) 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

Digerati Technologies had a gross margin of 64.84% for the quarter that ended in Jan. 2024 => 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.


Digerati Technologies Gross Margin % Related Terms

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


Digerati Technologies (Digerati Technologies) Business Description

Traded in Other Exchanges
N/A
Address
8023 Vantage Drive, Suite 660, San Antonio, TX, USA, 78230
Digerati Technologies Inc is a provider of cloud services specializing in Unified Communications as a Service (UCaaS) solutions. The company's product portfolio includes Internet-based telephony products and services delivered through its cloud application platform and session-based communication network and network services including internet broadband, fiber, mobile broadband and cloud WAN solutions (SD WAN). Its services provide enterprise-class, carrier-grade services to the small-to-medium-sized business at cost-effective monthly rates. Its UCaaS or cloud communication services include fully hosted IP/PBX, mobile applications, Voice over Internet Protocol transport, SIP trunking, and customized VoIP services all delivered Only in the Cloud.
Executives
Post Road Special Opportunity Fund Ii Offshore Lp 10 percent owner C/O POST ROAD GROUP LP, 2 LANDMARK SQUARE, SUITE 207, STAMFORD CT 06901
Kevin C. Davis 10 percent owner C/O POST ROAD GROUP LP, 2 LANDMARK SQUARE, SUITE 207, STAMFORD CT 06901
Post Road Sof Gp Ii Llc 10 percent owner 2 LANDMARK SQUARE, SUITE 207, STAMFORD CT 06901
Post Road Group Lp 10 percent owner 2 LANDMARK SQUARE, SUITE 207, STAMFORD CT 06901
Michael Bogdan 10 percent owner C/O POST ROAD GROUP LP, 2 LANDMARK SQUARE, SUITE 207, STAMFORD CT 06901
Post Road Special Opportunity Fund Ii Lp 10 percent owner 2 LANDMARK SQUARE, SUITE 207, STAMFORD CT 06901
Digerati Technologies, Inc. 10 percent owner 8023 VANTAGE DRIVE, SUITE 660, SAN ANTONIO TX 78230
Craig Kendall Clement director, 10 percent owner 626 JESSAMINE STREET, SAN ANTONIO TX 78209
Flagship Oil & Gas Corp. 10 percent owner 626 JESSAMINE STREET, SAN ANTONIO TX 78209
Max Polinsky director 10715 GULFDALE STE 200, SAN ANTONIO TX 78216
William E. Mcilwain other: Former Director 3111 ROSEMARY PARK LANE, HOUSTON TX 77082
Arthur L Smith officer: Chief Executive Officer 8600 WURZBACH, SUITE 700W, SAN ANTONIO TX 78240
James John Davis director 13626 WINTER CREEK COURT, HOUSTON TX 77077
Antonio Jr Estrada officer: Chief Financial Officer 1807 DEER RIDGE ST, SAN ANTONIO TX 78232
John Howell director 1950 CINNAMON TEAL DR., REDMOND OR 97756