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Livetech Da Bahia Industria E Comercio (BSP:LVTC3) Gross Margin % : 17.66% (As of Dec. 2023)


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What is Livetech Da Bahia Industria E Comercio Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Livetech Da Bahia Industria E Comercio's Gross Profit for the three months ended in Dec. 2023 was R$39 Mil. Livetech Da Bahia Industria E Comercio's Revenue for the three months ended in Dec. 2023 was R$219 Mil. Therefore, Livetech Da Bahia Industria E Comercio's Gross Margin % for the quarter that ended in Dec. 2023 was 17.66%.

Warning Sign:

Livetech Da Bahia Industria E Comercio SA gross margin has been in long-term decline. The average rate of decline per year is -5.9%.


The historical rank and industry rank for Livetech Da Bahia Industria E Comercio's Gross Margin % or its related term are showing as below:

BSP:LVTC3' s Gross Margin % Range Over the Past 10 Years
Min: 20.52   Med: 27.02   Max: 33.28
Current: 20.52


During the past 6 years, the highest Gross Margin % of Livetech Da Bahia Industria E Comercio was 33.28%. The lowest was 20.52%. And the median was 27.02%.

BSP:LVTC3's Gross Margin % is ranked worse than
86.08% of 352 companies
in the Telecommunication Services industry
Industry Median: 49.06 vs BSP:LVTC3: 20.52

Livetech Da Bahia Industria E Comercio had a gross margin of 17.66% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Livetech Da Bahia Industria E Comercio was -5.90% per year.


Livetech Da Bahia Industria E Comercio Gross Margin % Historical Data

The historical data trend for Livetech Da Bahia Industria E Comercio'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.

Livetech Da Bahia Industria E Comercio Gross Margin % Chart

Livetech Da Bahia Industria E Comercio Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 26.38 33.28 27.65 23.13 20.90

Livetech Da Bahia Industria E Comercio Quarterly Data
Dec18 Dec19 Mar20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 21.15 20.52 23.51 21.95 17.66

Competitive Comparison of Livetech Da Bahia Industria E Comercio's Gross Margin %

For the Telecom Services subindustry, Livetech Da Bahia Industria E Comercio'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.


Livetech Da Bahia Industria E Comercio's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Livetech Da Bahia Industria E Comercio's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Livetech Da Bahia Industria E Comercio's Gross Margin % falls into.



Livetech Da Bahia Industria E Comercio Gross Margin % Calculation

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

Livetech Da Bahia Industria E Comercio'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 )
=188.3 / 900.717
=(Revenue - Cost of Goods Sold) / Revenue
=(900.717 - 712.455) / 900.717
=20.90 %

Livetech Da Bahia Industria E Comercio's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=38.7 / 218.901
=(Revenue - Cost of Goods Sold) / Revenue
=(218.901 - 180.239) / 218.901
=17.66 %

* 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.


Livetech Da Bahia Industria E Comercio  (BSP:LVTC3) 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

Livetech Da Bahia Industria E Comercio had a gross margin of 17.66% for the quarter that ended in Dec. 2023 => 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.


Livetech Da Bahia Industria E Comercio Gross Margin % Related Terms

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Livetech Da Bahia Industria E Comercio (BSP:LVTC3) Business Description

Traded in Other Exchanges
N/A
Address
Rua Gomes de Carvalho, 1609, Vila Olimpia, Sao Paulo, SP, BRA, 04547-006
Livetech Da Bahia Industria E Comercio SA is a technology company focused on telecommunications optical fiber and corporate sectors. It has a broad portfolio that offers solutions for broadband internet via optical fiber, Electronic Security, IP Telephony (VoIP), WI-FI Networks, Data Centers, Cybersecurity, Professional Audio and Video, Smart- Home and Solar Energy.

Livetech Da Bahia Industria E Comercio (BSP:LVTC3) Headlines

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