American Virtual Cloud Technologies (American Virtual Cloud Technologies) Gross Margin % : 23.55% (As of Mar. 2023)

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What is American Virtual Cloud Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. American Virtual Cloud Technologies's Gross Profit for the three months ended in Mar. 2023 was $0.96 Mil. American Virtual Cloud Technologies's Revenue for the three months ended in Mar. 2023 was $4.06 Mil. Therefore, American Virtual Cloud Technologies's Gross Margin % for the quarter that ended in Mar. 2023 was 23.55%.

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

AVCTQ's Gross Margin % is not ranked ^*
in the Software industry.
Industry Median: 41.685
* Ranked among companies with meaningful Gross Margin % only.

American Virtual Cloud Technologies had a gross margin of 23.55% for the quarter that ended in Mar. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for American Virtual Cloud Technologies was 0.00% per year.

American Virtual Cloud Technologies Gross Margin % Historical Data

The historical data trend for American Virtual Cloud 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.

American Virtual Cloud Technologies Gross Margin % Chart

American Virtual Cloud Technologies Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Dec21

Dec22

Gross Margin %

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19.29

-9.29

American Virtual Cloud Technologies Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Gross Margin %	Get a 7-Day Free Trial															-18.12	-41.70	4.39	12.36	23.55

Competitive Comparison of American Virtual Cloud Technologies's Gross Margin %

For the Information Technology Services subindustry, American Virtual Cloud 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.

American Virtual Cloud Technologies's Gross Margin % Distribution in the Software Industry

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

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

American Virtual Cloud Technologies Gross Margin % Calculation

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

American Virtual Cloud Technologies'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 )
	=	-1.6	/	16.811
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(16.811 - 18.372)	/	16.811
	=	-9.29 %

American Virtual Cloud Technologies's Gross Margin for the quarter that ended in Mar. 2023 is calculated as

Gross Margin % (Q: Mar. 2023 )	=	Gross Profit (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	1	/	4.063
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4.063 - 3.106)	/	4.063
	=	23.55 %

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.

American Virtual Cloud Technologies (OTCPK:AVCTQ) 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

American Virtual Cloud Technologies had a gross margin of 23.55% for the quarter that ended in Mar. 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.

American Virtual Cloud Technologies Gross Margin % Related Terms

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American Virtual Cloud Technologies (American Virtual Cloud Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » American Virtual Cloud Technologies Inc (OTCPK:AVCTQ) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1720 Peachtree Street, Suite 629, Atlanta, GA, USA, 30309

Website

https://www.avctechnologies.com

American Virtual Cloud Technologies Inc is engaged in the business of providing IT solutions. The company, along with its subsidiaries, offers various services like private & hybrid data centers, enterprise networking solutions, unified cloud communications, managed services, cybersecurity, and enhanced connectivity. It caters its services to different sectors such as Energy, Finance, Healthcare, Manufacturing & logistics, Public sector, Retail and hospitality, Technology service providers, and Others. It has two segments Computex and Kandy. Geographically, it generates the majority of its revenue from the domestic market.

Executives

Charles E. Sweet	director	1720 PEACHTREE STREET, SUITE 629, ATLANTA GA 30309
Ribbon Communications Inc.	10 percent owner	6500 CHASE OAKS BOULEVARD, PLANO TX 75023
Adrian Foltz	officer: Chief Financial Officer	1720 PEACHTREE STREET, SUITE 629, ATLANTA GA 30309
Onex Evans	officer: Chief Accounting Officer	1720 PEACHTREE STREET, SUITE 629, ATLANTA GA 30309
Michael Tessler	director	C/O BROADSOFT, INC., 220 PERRY PARKWAY, GAITHERSBURG MD 20877
Mock Lawrence E, Jr.	director	ONE BUCKHEAD PLAZA, 3060 PEACHTREE RD, SUITE 780, ATLANTA GA 30305
Dennis P Lockhart	director	100 GOLF ROAD, GOLF IL 60029
Pensare Sponsor Group, Llc	10 percent owner	1720 PEACHTREE STREET, SUITE 629, ATLANTA GA 30309
Spac Opportunity Fund I, L.p.	10 percent owner	2870 PEACHTREE ROAD NW, SUITE 509, ATLANTA GA 30305
Navigation Capital Partners, Inc.	10 percent owner	2870 PEACHTREE RD. NW, UNIT 509, ATLANTA GA 30305
Navigation Capital Partners Ii, L.p.	10 percent owner	2870 PEACHTREE RD. NW, UNIT 509, ATLANTA GA 30305
Stratos Management Systems Holdings Llc	10 percent owner	2870 PEACHTREE RD. NW, UNIT 509, ATLANTA GA 30305
Kevin Keough	officer: President	1720 PEACHTREE STREET, SUITE 629, ATLANTA GA 30309
Robert E. Willis	director	C/O PENSARE SPONSOR GROUP, LLC, 1720 PEACHTREE STREET, SUITE 629, ATLANTA GA 30309
Spac Opportunity Partners, Llc	10 percent owner	2870 PEACHTREE ROAD NW, SUITE 509, ATLANTA GA 30305