ReadyTech Holdings (ASX:RDY) Gross Margin % : 91.35% (As of Dec. 2023)

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What is ReadyTech Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ReadyTech Holdings's Gross Profit for the six months ended in Dec. 2023 was A$50.0 Mil. ReadyTech Holdings's Revenue for the six months ended in Dec. 2023 was A$54.7 Mil. Therefore, ReadyTech Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 91.35%.

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

ASX:RDY' s Gross Margin % Range Over the Past 10 Years
Min: 91.62 Med: 93.06 Max: 94.02
Current: 91.62

During the past 5 years, the highest Gross Margin % of ReadyTech Holdings was 94.02%. The lowest was 91.62%. And the median was 93.06%.

ASX:RDY's Gross Margin % is ranked better than
95.02% of 2631 companies
in the Software industry
Industry Median: 41.74 vs ASX:RDY: 91.62

ReadyTech Holdings had a gross margin of 91.35% for the quarter that ended in Dec. 2023 => Durable competitive advantage

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

ReadyTech Holdings Gross Margin % Historical Data

The historical data trend for ReadyTech Holdings'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.

ReadyTech Holdings Gross Margin % Chart

ReadyTech Holdings Annual Data

Trend

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

94.01

92.78

93.06

94.02

92.02

ReadyTech Holdings Semi-Annual Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial						93.52	94.43	92.17	91.89	91.35

Competitive Comparison of ReadyTech Holdings's Gross Margin %

For the Software - Application subindustry, ReadyTech Holdings'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.

ReadyTech Holdings's Gross Margin % Distribution in the Software Industry

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

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

ReadyTech Holdings Gross Margin % Calculation

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

ReadyTech Holdings'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 )
	=	95.1	/	103.306
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(103.306 - 8.244)	/	103.306
	=	92.02 %

ReadyTech Holdings'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 )
	=	50	/	54.726
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(54.726 - 4.732)	/	54.726
	=	91.35 %

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.

ReadyTech Holdings (ASX:RDY) 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

ReadyTech Holdings had a gross margin of 91.35% for the quarter that ended in Dec. 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.

ReadyTech Holdings Gross Margin % Related Terms

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ReadyTech Holdings (ASX:RDY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » ReadyTech Holdings Ltd (ASX:RDY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

77 King Street, Level 2, Sydney, NSW, AUS, 2000

Website

https://www.readytech.com.au

ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Education segment. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments and justice departments.