ATW Tech (TSXV:ATW) Gross Margin % : -23.82% (As of Sep. 2023)

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What is ATW Tech Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. ATW Tech's Gross Profit for the three months ended in Sep. 2023 was C$-0.08 Mil. ATW Tech's Revenue for the three months ended in Sep. 2023 was C$0.34 Mil. Therefore, ATW Tech's Gross Margin % for the quarter that ended in Sep. 2023 was -23.82%.

Warning Sign:

ATW Tech Inc gross margin has been in long-term decline. The average rate of decline per year is -38.8%.

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

TSXV:ATW' s Gross Margin % Range Over the Past 10 Years
Min: -10.35 Med: 11.96 Max: 43.9
Current: -10.35

During the past 13 years, the highest Gross Margin % of ATW Tech was 43.90%. The lowest was -10.35%. And the median was 11.96%.

TSXV:ATW's Gross Margin % is ranked worse than
97.38% of 2633 companies
in the Software industry
Industry Median: 41.79 vs TSXV:ATW: -10.35

ATW Tech had a gross margin of -23.82% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for ATW Tech was -38.80% per year.

ATW Tech Gross Margin % Historical Data

The historical data trend for ATW Tech'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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ATW Tech Gross Margin % Chart

ATW Tech Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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17.42

11.96

9.74

11.34

0.64

ATW Tech Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															-36.46	-7.62	-0.40	-5.52	-23.82

Competitive Comparison of ATW Tech's Gross Margin %

For the Software - Infrastructure subindustry, ATW Tech'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.

ATW Tech's Gross Margin % Distribution in the Software Industry

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

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

ATW Tech Gross Margin % Calculation

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

ATW Tech'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 )
	=	0	/	1.711
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.711 - 1.7)	/	1.711
	=	0.64 %

ATW Tech's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	-0.1	/	0.34
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.34 - 0.421)	/	0.34
	=	-23.82 %

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.

ATW Tech (TSXV:ATW) 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

ATW Tech had a gross margin of -23.82% for the quarter that ended in Sep. 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.

ATW Tech Gross Margin % Related Terms

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ATW Tech (TSXV:ATW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » ATW Tech Inc (TSXV:ATW) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1050 de la Montagne Street, Suite 400, Montreal, QC, CAN, H3G 1Y8

Website

https://www.atwtech.com

ATW Tech Inc is a financial technology company owning several web platforms including VoxTel, VuduMobile, Option.vote and Bloomed. The Communication segment offers various interactive communication and payment solutions, including carrier billing. Its Psychometric assessment segment offered assistance to businesses and mass markets in talent optimization and human capital development. Geographic segments include Canada, the United States, Europe, and other countries of which Europe region generates maximum revenue.