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SUSE (WBO:SUSE) Gross Margin % : 92.12% (As of Jul. 2023)


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What is SUSE Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SUSE's Gross Profit for the three months ended in Jul. 2023 was €144.1 Mil. SUSE's Revenue for the three months ended in Jul. 2023 was €156.4 Mil. Therefore, SUSE's Gross Margin % for the quarter that ended in Jul. 2023 was 92.12%.


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

WBO:SUSE' s Gross Margin % Range Over the Past 10 Years
Min: 91.99   Med: 92.28   Max: 94.09
Current: 91.99


During the past 3 years, the highest Gross Margin % of SUSE was 94.09%. The lowest was 91.99%. And the median was 92.28%.

WBO:SUSE's Gross Margin % is not ranked
in the Software industry.
Industry Median: 41.71 vs WBO:SUSE: 91.99

SUSE had a gross margin of 92.12% for the quarter that ended in Jul. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for SUSE was 0.00% per year.


SUSE Gross Margin % Historical Data

The historical data trend for SUSE'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.

SUSE Gross Margin % Chart

SUSE Annual Data
Trend Oct20 Oct21 Oct22
Gross Margin %
94.09 92.28 92.06

SUSE Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 92.12 92.27 91.92 91.58 92.12

Competitive Comparison of SUSE's Gross Margin %

For the Software - Application subindustry, SUSE'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.


SUSE's Gross Margin % Distribution in the Software Industry

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

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



SUSE Gross Margin % Calculation

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

SUSE's Gross Margin for the fiscal year that ended in Oct. 2022 is calculated as

Gross Margin % (A: Oct. 2022 )=Gross Profit (A: Oct. 2022 ) / Revenue (A: Oct. 2022 )
=610.2 / 662.818
=(Revenue - Cost of Goods Sold) / Revenue
=(662.818 - 52.646) / 662.818
=92.06 %

SUSE's Gross Margin for the quarter that ended in Jul. 2023 is calculated as


Gross Margin % (Q: Jul. 2023 )=Gross Profit (Q: Jul. 2023 ) / Revenue (Q: Jul. 2023 )
=144.1 / 156.386
=(Revenue - Cost of Goods Sold) / Revenue
=(156.386 - 12.322) / 156.386
=92.12 %

* 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.


SUSE  (WBO:SUSE) 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

SUSE had a gross margin of 92.12% for the quarter that ended in Jul. 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.


SUSE Gross Margin % Related Terms

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


SUSE (WBO:SUSE) Business Description

Traded in Other Exchanges
N/A
Address
11-13 Boulevard de la Foire, Grand Duchy, LUX, L-1528
SUSE SA is a software company that offers solutions to Automotive Telecom, Banking and Financial Services, Healthcare, Manufacturing, Retail, and Technology and Software industries. The services of the company include Consulting services, Blended Services, and Training and Certification. It derives revenue from Subscriptions. Geographically, it derives a majority of its revenue from North America.

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