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Allied Tecnologia (BSP:ALLD3) Gross Margin % : 11.83% (As of Mar. 2024)


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What is Allied Tecnologia Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Allied Tecnologia's Gross Profit for the three months ended in Mar. 2024 was R$168 Mil. Allied Tecnologia's Revenue for the three months ended in Mar. 2024 was R$1,419 Mil. Therefore, Allied Tecnologia's Gross Margin % for the quarter that ended in Mar. 2024 was 11.83%.

Warning Sign:

Allied Tecnologia SA gross margin has been in long-term decline. The average rate of decline per year is -6%.


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

BSP:ALLD3' s Gross Margin % Range Over the Past 10 Years
Min: 11.35   Med: 15.07   Max: 17.07
Current: 11.35


During the past 7 years, the highest Gross Margin % of Allied Tecnologia was 17.07%. The lowest was 11.35%. And the median was 15.07%.

BSP:ALLD3's Gross Margin % is ranked worse than
91.74% of 2638 companies
in the Software industry
Industry Median: 41.84 vs BSP:ALLD3: 11.35

Allied Tecnologia had a gross margin of 11.83% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Allied Tecnologia was -6.00% per year.


Allied Tecnologia Gross Margin % Historical Data

The historical data trend for Allied Tecnologia'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.

Allied Tecnologia Gross Margin % Chart

Allied Tecnologia Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 15.78 15.63 14.08 15.07 11.59

Allied Tecnologia 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 12.88 11.00 10.39 12.26 11.83

Competitive Comparison of Allied Tecnologia's Gross Margin %

For the Software - Application subindustry, Allied Tecnologia'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.


Allied Tecnologia's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Allied Tecnologia's Gross Margin % falls into.



Allied Tecnologia Gross Margin % Calculation

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

Allied Tecnologia'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 )
=678.3 / 5854.915
=(Revenue - Cost of Goods Sold) / Revenue
=(5854.915 - 5176.618) / 5854.915
=11.59 %

Allied Tecnologia'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 )
=167.9 / 1419.118
=(Revenue - Cost of Goods Sold) / Revenue
=(1419.118 - 1251.17) / 1419.118
=11.83 %

* 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.


Allied Tecnologia  (BSP:ALLD3) 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

Allied Tecnologia had a gross margin of 11.83% 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.


Allied Tecnologia Gross Margin % Related Terms

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Allied Tecnologia (BSP:ALLD3) Business Description

Traded in Other Exchanges
N/A
Address
Av. Das Nacoes Unidas, 12.995, 22nd floor - Brooklin - CEP: 04578-911, Sao Paulo, BRA
Allied Tecnologia SA is a technology company. It provides multichannel solutions suitable for all business models.

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