Alliance Entertainment Holding (Alliance Entertainment Holding) Gross Margin % : 11.21% (As of Dec. 2023)

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What is Alliance Entertainment Holding Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Alliance Entertainment Holding's Gross Profit for the three months ended in Dec. 2023 was $48 Mil. Alliance Entertainment Holding's Revenue for the three months ended in Dec. 2023 was $426 Mil. Therefore, Alliance Entertainment Holding's Gross Margin % for the quarter that ended in Dec. 2023 was 11.21%.

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

AENT' s Gross Margin % Range Over the Past 10 Years
Min: 8.97 Med: 13.34 Max: 15.36
Current: 11.67

During the past 4 years, the highest Gross Margin % of Alliance Entertainment Holding was 15.36%. The lowest was 8.97%. And the median was 13.34%.

AENT's Gross Margin % is ranked worse than
88.47% of 963 companies
in the Media - Diversified industry
Industry Median: 38.48 vs AENT: 11.67

Alliance Entertainment Holding had a gross margin of 11.21% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

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

Alliance Entertainment Holding Gross Margin % Historical Data

The historical data trend for Alliance Entertainment Holding'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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Alliance Entertainment Holding Gross Margin % Chart

Alliance Entertainment Holding Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

Gross Margin %

15.36

13.80

12.87

8.97

Alliance Entertainment Holding Quarterly Data
	Jun20	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial						4.69	12.00	12.24	11.58	11.21

Competitive Comparison of Alliance Entertainment Holding's Gross Margin %

For the Entertainment subindustry, Alliance Entertainment Holding'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.

Alliance Entertainment Holding's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Alliance Entertainment Holding's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Alliance Entertainment Holding's Gross Margin % falls into.

Alliance Entertainment Holding Gross Margin % Calculation

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

Alliance Entertainment Holding's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	103.9	/	1158.722
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1158.722 - 1054.788)	/	1158.722
	=	8.97 %

Alliance Entertainment Holding's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	47.7	/	425.586
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(425.586 - 377.883)	/	425.586
	=	11.21 %

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.

Alliance Entertainment Holding (NAS:AENT) 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

Alliance Entertainment Holding had a gross margin of 11.21% for the quarter that ended in Dec. 2023 => No sustainable 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.

Alliance Entertainment Holding Gross Margin % Related Terms

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Alliance Entertainment Holding (Alliance Entertainment Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Alliance Entertainment Holding Corp (NAS:AENT) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

8201 Peters Road, Suite 1000, Plantation, FL, USA, 33324

Website

https://www.aent.com

Alliance Entertainment Holding Corp is a top tier distributor of music, movies, and consumer electronics. It offers more than 485,000 SKU products, consisting of vinyl records, compact discs, DVDs, Blu-rays, and video games. The company serves customers of every size, providing a suite of services to resellers and retailers around the world.