Gross Margin % is calculated as gross profit divided by its revenue. Believe's Gross Profit for the
six
months ended in Jun. 2023 was €112.7 Mil. Believe's Revenue for the
six
months ended in Jun. 2023 was €415.4 Mil. Therefore, Believe's Gross Margin % for the quarter that ended in Jun. 2023 was 27.12%.
The historical rank and industry rank for Believe's Gross Margin % or its related term are showing as below:
XPAR:BLV'
s Gross Margin % Range Over the Past 10 Years
Min: 25.75 Med: 30.25 Max: 65.61
Current: 65.61
During the past 7 years, the highestGross Margin % of Believe was 65.61%. The lowest was 25.75%. And the median was 30.25%.
XPAR:BLV's Gross Margin % is ranked better than 80% of 965
companies
in the Media - Diversified industry
Industry Median: 37.97
vs XPAR:BLV: 65.61
Believe had a gross margin of 27.12% for the quarter that ended in Jun. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Believe was 0.00% per year.
Believe Gross Margin % Historical Data
The historical data trend for Believe'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.
Competitive Comparison of Believe's Gross Margin %
For the Entertainment subindustry, Believe'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.
Believe's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Believe's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Believe's Gross Margin % falls into.
* 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.
Believe (XPAR:BLV) 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
Believe had a gross margin of 27.12% 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.
Believe Gross Margin % Related Terms
Thank you for viewing the detailed overview of Believe's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Believe SA specializes in the sale and promotion of audio and video content from artists and independent labels. The Company has identified two operating segments which is Premium Solutions and Automated Solutions. Premium solutions this consists mainly of the sale, promotion and delivery of digital content provided by artists and labels for which the Group is responsible for developing their catalog on digital platforms and social media, as appropriate, using a split revenue model. Automated Solutions whereby the Group enablesartists, via its TuneCore digital platform, to distribute their audio content in an automated manner to streaming and social media platforms in return for a subscription fee or margin. The company generated majority of its revenue from Premium Solutions.
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