GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » LS telcom AG (XTER:LSX) » Definitions » Gross Margin %

LS telcom AG (XTER:LSX) Gross Margin % : 83.72% (As of Sep. 2023)


View and export this data going back to 2001. Start your Free Trial

What is LS telcom AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. LS telcom AG's Gross Profit for the six months ended in Sep. 2023 was €17.30 Mil. LS telcom AG's Revenue for the six months ended in Sep. 2023 was €20.67 Mil. Therefore, LS telcom AG's Gross Margin % for the quarter that ended in Sep. 2023 was 83.72%.

Warning Sign:

LS telcom AG gross margin has been in long-term decline. The average rate of decline per year is -3.6%.


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

XTER:LSX' s Gross Margin % Range Over the Past 10 Years
Min: 72.02   Med: 89.78   Max: 96.79
Current: 86.1


During the past 13 years, the highest Gross Margin % of LS telcom AG was 96.79%. The lowest was 72.02%. And the median was 89.78%.

XTER:LSX's Gross Margin % is ranked better than
93.16% of 351 companies
in the Telecommunication Services industry
Industry Median: 49.13 vs XTER:LSX: 86.10

LS telcom AG had a gross margin of 83.72% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for LS telcom AG was -3.60% per year.


LS telcom AG Gross Margin % Historical Data

The historical data trend for LS telcom AG'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.

LS telcom AG Gross Margin % Chart

LS telcom AG Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 89.86 96.79 90.33 72.02 86.10

LS telcom AG Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 82.72 79.16 66.37 88.44 83.72

Competitive Comparison of LS telcom AG's Gross Margin %

For the Telecom Services subindustry, LS telcom AG'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.


LS telcom AG's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, LS telcom AG's Gross Margin % distribution charts can be found below:

* The bar in red indicates where LS telcom AG's Gross Margin % falls into.



LS telcom AG Gross Margin % Calculation

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

LS telcom AG's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=35.9 / 41.708
=(Revenue - Cost of Goods Sold) / Revenue
=(41.708 - 5.798) / 41.708
=86.10 %

LS telcom AG'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 )
=17.3 / 20.667
=(Revenue - Cost of Goods Sold) / Revenue
=(20.667 - 3.365) / 20.667
=83.72 %

* 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.


LS telcom AG  (XTER:LSX) 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

LS telcom AG had a gross margin of 83.72% for the quarter that ended in Sep. 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.


LS telcom AG Gross Margin % Related Terms

Thank you for viewing the detailed overview of LS telcom AG's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


LS telcom AG (XTER:LSX) Business Description

Traded in Other Exchanges
Address
Im Gewerbegebiet 31-33, Lichtenau, DEU, 77839
LS telcom AG is a supplier of system solutions for radio spectrum management and wireless network planning and engineering. It offers a portfolio of software, strategic consulting, training and engineering services. The company offers various training courses, such as a variety of topics in broadcast, radio communications, spectrum management, and monitoring and measurement. It also provides training courses on spectrum planning, broadcast technologies, and standards; technological system solutions and consulting services.

LS telcom AG (XTER:LSX) Headlines

No Headlines