GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Universal Arts Ltd (BOM:532378) » Definitions » Gross Margin %

Universal Arts (BOM:532378) Gross Margin % : 8.25% (As of Mar. 2024)


View and export this data going back to 2000. Start your Free Trial

What is Universal Arts Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Universal Arts's Gross Profit for the three months ended in Mar. 2024 was ₹0.28 Mil. Universal Arts's Revenue for the three months ended in Mar. 2024 was ₹3.41 Mil. Therefore, Universal Arts's Gross Margin % for the quarter that ended in Mar. 2024 was 8.25%.

Warning Sign:

Universal Arts Ltd gross margin has been in long-term decline. The average rate of decline per year is -22.4%.


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

BOM:532378' s Gross Margin % Range Over the Past 10 Years
Min: 3.34   Med: 23.89   Max: 41.33
Current: 3.34


During the past 13 years, the highest Gross Margin % of Universal Arts was 41.33%. The lowest was 3.34%. And the median was 23.89%.

BOM:532378's Gross Margin % is ranked worse than
95.18% of 955 companies
in the Media - Diversified industry
Industry Median: 38.39 vs BOM:532378: 3.34

Universal Arts had a gross margin of 8.25% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Universal Arts was -22.40% per year.


Universal Arts Gross Margin % Historical Data

The historical data trend for Universal Arts'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.

Universal Arts Gross Margin % Chart

Universal Arts Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.39 14.24 13.64 23.89 3.34

Universal Arts 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 97.96 - - 1.69 8.25

Competitive Comparison of Universal Arts's Gross Margin %

For the Entertainment subindustry, Universal Arts'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.


Universal Arts's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Universal Arts's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Universal Arts's Gross Margin % falls into.



Universal Arts Gross Margin % Calculation

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

Universal Arts's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=0.4 / 13.375
=(Revenue - Cost of Goods Sold) / Revenue
=(13.375 - 12.928) / 13.375
=3.34 %

Universal Arts'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 )
=0.3 / 3.407
=(Revenue - Cost of Goods Sold) / Revenue
=(3.407 - 3.126) / 3.407
=8.25 %

* 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.


Universal Arts  (BOM:532378) 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

Universal Arts had a gross margin of 8.25% for the quarter that ended in Mar. 2024 => 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.


Universal Arts Gross Margin % Related Terms

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


Universal Arts (BOM:532378) Business Description

Traded in Other Exchanges
N/A
Address
M. G. Road, Plot No. 45, Ganpati Bhavan, 1st Floor, Goregaon (West), Mumbai, MH, IND, 400062
Universal Arts Ltd is engaged in the Entertainment Industry. It is engaged in the business of media such as TV serials, feature film production, trading in film rights, and television software. It has its EDIT V6 real-time non-linear editing systems. The EDIT system is being used by the company for editing serials of other production houses as well as its own. The company also offers movies to Doordarshan for a one-time single telecast.

Universal Arts (BOM:532378) Headlines

No Headlines