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Atos SE (XPAR:ATO) Gross Margin % : 32.08% (As of Jun. 2023)


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What is Atos SE Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Atos SE's Gross Profit for the six months ended in Jun. 2023 was €1,780 Mil. Atos SE's Revenue for the six months ended in Jun. 2023 was €5,548 Mil. Therefore, Atos SE's Gross Margin % for the quarter that ended in Jun. 2023 was 32.08%.

Warning Sign:

Atos SE gross margin has been in long-term decline. The average rate of decline per year is -1.9%.


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

XPAR:ATO' s Gross Margin % Range Over the Past 10 Years
Min: 28.44   Med: 30.61   Max: 38.03
Current: 32.08


During the past 13 years, the highest Gross Margin % of Atos SE was 38.03%. The lowest was 28.44%. And the median was 30.61%.

XPAR:ATO's Gross Margin % is ranked worse than
62.9% of 2628 companies
in the Software industry
Industry Median: 41.685 vs XPAR:ATO: 32.08

Atos SE had a gross margin of 32.08% for the quarter that ended in Jun. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Atos SE was -1.90% per year.


Atos SE Gross Margin % Historical Data

The historical data trend for Atos SE'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.

Atos SE Gross Margin % Chart

Atos SE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.03 36.65 32.35 30.01 -

Atos SE Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 31.02 29.68 30.34 32.08 -

Competitive Comparison of Atos SE's Gross Margin %

For the Information Technology Services subindustry, Atos SE'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.


Atos SE's Gross Margin % Distribution in the Software Industry

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

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



Atos SE Gross Margin % Calculation

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

Atos SE'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 )
=3404 / 11341
=(Revenue - Cost of Goods Sold) / Revenue
=(11341 - 7937) / 11341
=30.01 %

Atos SE's Gross Margin for the quarter that ended in Jun. 2023 is calculated as


Gross Margin % (Q: Jun. 2023 )=Gross Profit (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=1780 / 5548
=(Revenue - Cost of Goods Sold) / Revenue
=(5548 - 3768) / 5548
=32.08 %

* 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.


Atos SE  (XPAR:ATO) 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

Atos SE had a gross margin of 32.08% for the quarter that ended in Jun. 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.


Atos SE Gross Margin % Related Terms

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Atos SE (XPAR:ATO) Business Description

Address
River Ouest, 80 Quai Voltaire, Bezons Cedex, Paris, FRA, 95877
Atos SE is an information technology company offering clients a full-stack range of digital solutions and products alongside consultancy services, digital security and decarbonization offerings. Its operating segments include North America, Northern Europe, Central Europe, Southern Europe and Growing Markets. Its purpose is to help design the future of the information space. The company enables its customers and employees, and members of society to live, work and develop sustainably, in a safe and secure information space.

Atos SE (XPAR:ATO) Headlines