Koal Software Co (SHSE:603232) Gross Margin % : 39.62% (As of Sep. 2023)

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What is Koal Software Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Koal Software Co's Gross Profit for the three months ended in Sep. 2023 was ¥66.8 Mil. Koal Software Co's Revenue for the three months ended in Sep. 2023 was ¥168.5 Mil. Therefore, Koal Software Co's Gross Margin % for the quarter that ended in Sep. 2023 was 39.62%.

Warning Sign:

Koal Software Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -7%.

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

SHSE:603232' s Gross Margin % Range Over the Past 10 Years
Min: 39.86 Med: 58.45 Max: 64.22
Current: 41.94

During the past 11 years, the highest Gross Margin % of Koal Software Co was 64.22%. The lowest was 39.86%. And the median was 58.45%.

SHSE:603232's Gross Margin % is ranked better than
50.42% of 2628 companies
in the Software industry
Industry Median: 41.71 vs SHSE:603232: 41.94

Koal Software Co had a gross margin of 39.62% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Koal Software Co was -7.00% per year.

Koal Software Co Gross Margin % Historical Data

The historical data trend for Koal Software Co'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.

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Koal Software Co Gross Margin % Chart

Koal Software Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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59.55

58.56

55.02

51.72

39.86

Koal Software Co Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															41.76	41.81	46.36	43.16	39.62

Competitive Comparison of Koal Software Co's Gross Margin %

For the Software - Infrastructure subindustry, Koal Software Co'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.

Koal Software Co's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Koal Software Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Koal Software Co's Gross Margin % falls into.

Koal Software Co Gross Margin % Calculation

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

Koal Software Co's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	262.9	/	659.521
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(659.521 - 396.64)	/	659.521
	=	39.86 %

Koal Software Co's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	66.8	/	168.513
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(168.513 - 101.751)	/	168.513
	=	39.62 %

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.

Koal Software Co (SHSE:603232) 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

Koal Software Co had a gross margin of 39.62% for the quarter that ended in Sep. 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.

Koal Software Co Gross Margin % Related Terms

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Koal Software Co (SHSE:603232) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Koal Software Co Ltd (SHSE:603232) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Lane 299, Jiangchang West Road, 6th Floor, Room 601, No. 5, Building 4, Central Times Square, Jingan District, Shanghai, CHN, 200436

Website

http://www.koal.com

Koal Software Co Ltd is engaged in the development, production, sale, and service of commercial password software to the information security industry and public key infrastructure field. Its product line includes digital certificate authentication system; secure authentication gateway; signature verification server; electronic signature system; secure email system; secure instant messaging system; electronic file management system; LAN access authentication system; and mobile media management system.

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