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Al-Zarka Educational & Investment Co (AMM:ZEIC) Gross Margin % : 54.29% (As of Mar. 2024)


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What is Al-Zarka Educational & Investment Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Al-Zarka Educational & Investment Co's Gross Profit for the three months ended in Mar. 2024 was JOD4.81 Mil. Al-Zarka Educational & Investment Co's Revenue for the three months ended in Mar. 2024 was JOD8.87 Mil. Therefore, Al-Zarka Educational & Investment Co's Gross Margin % for the quarter that ended in Mar. 2024 was 54.29%.


The historical rank and industry rank for Al-Zarka Educational & Investment Co's Gross Margin % or its related term are showing as below:

AMM:ZEIC' s Gross Margin % Range Over the Past 10 Years
Min: 44.91   Med: 47.69   Max: 51.02
Current: 50.38


During the past 13 years, the highest Gross Margin % of Al-Zarka Educational & Investment Co was 51.02%. The lowest was 44.91%. And the median was 47.69%.

AMM:ZEIC's Gross Margin % is ranked better than
53.41% of 249 companies
in the Education industry
Industry Median: 47.9 vs AMM:ZEIC: 50.38

Al-Zarka Educational & Investment Co had a gross margin of 54.29% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Al-Zarka Educational & Investment Co was 2.10% per year.


Al-Zarka Educational & Investment Co Gross Margin % Historical Data

The historical data trend for Al-Zarka Educational & Investment Co'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.

Al-Zarka Educational & Investment Co Gross Margin % Chart

Al-Zarka Educational & Investment Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 44.91 45.87 47.02 51.02 50.83

Al-Zarka Educational & Investment Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 57.20 44.78 36.62 57.94 54.29

Competitive Comparison of Al-Zarka Educational & Investment Co's Gross Margin %

For the Education & Training Services subindustry, Al-Zarka Educational & Investment Co'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.


Al-Zarka Educational & Investment Co's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Al-Zarka Educational & Investment Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Al-Zarka Educational & Investment Co's Gross Margin % falls into.



Al-Zarka Educational & Investment Co Gross Margin % Calculation

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

Al-Zarka Educational & Investment Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=14.5 / 28.438
=(Revenue - Cost of Goods Sold) / Revenue
=(28.438 - 13.982) / 28.438
=50.83 %

Al-Zarka Educational & Investment Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=4.8 / 8.868
=(Revenue - Cost of Goods Sold) / Revenue
=(8.868 - 4.054) / 8.868
=54.29 %

* 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.


Al-Zarka Educational & Investment Co  (AMM:ZEIC) 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

Al-Zarka Educational & Investment Co had a gross margin of 54.29% for the quarter that ended in Mar. 2024 => 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.


Al-Zarka Educational & Investment Co Gross Margin % Related Terms

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Al-Zarka Educational & Investment Co (AMM:ZEIC) Business Description

Traded in Other Exchanges
N/A
Address
Commercial Zone, P.O. Box 132222, Al-Zarqa, JOR, 13132
Al-Zarka Educational & Investment Co provides educational services. It is a private university located in Zarqa city. The university offers quality education that provides students with the knowledge and the essential skills need to upgrade academic achievements, achieve comprehensive and integrated development of their personalities, prepare them for the future and form their positive perspectives.

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