Gross Margin % is calculated as gross profit divided by its revenue. Cineverse's Gross Profit for the
three
months ended in Dec. 2023 was $7.81 Mil. Cineverse's Revenue for the
three
months ended in Dec. 2023 was $13.28 Mil. Therefore, Cineverse's Gross Margin % for the quarter that ended in Dec. 2023 was 58.84%.
Warning Sign:
Cineverse Corp gross margin has been in long-term decline. The average rate of decline per year is -7.1%.
The historical rank and industry rank for Cineverse's Gross Margin % or its related term are showing as below:
CNVS'
s Gross Margin % Range Over the Past 10 Years
Min: 46.54 Med: 69.94 Max: 72.28
Current: 54.45
During the past 13 years, the highestGross Margin % of Cineverse was 72.28%. The lowest was 46.54%. And the median was 69.94%.
CNVS's Gross Margin % is ranked better than 70.55% of 961
companies
in the Media - Diversified industry
Industry Median: 38.48
vs CNVS: 54.45
Cineverse had a gross margin of 58.84% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Cineverse was -7.10% per year.
Cineverse Gross Margin % Historical Data
The historical data trend for Cineverse'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.
Competitive Comparison of Cineverse's Gross Margin %
For the Entertainment subindustry, Cineverse'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.
Cineverse's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Cineverse's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cineverse's Gross Margin % falls into.
* 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.
Cineverse (NAS:CNVS) 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
Cineverse had a gross margin of 58.84% for the quarter that ended in Dec. 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.
Cineverse Gross Margin % Related Terms
Thank you for viewing the detailed overview of Cineverse's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cineverse Corp is a streaming technology and entertainment company. It operates portfolios of owned and operated streaming channels, all powered by its, proprietary technology platform. Cineverse currently features enthusiast brands for subscription video on demand (SVOD), advertising-based video on demand (AVOD), and free, ad-supported streaming television (FAST) channels. The company mainly operates through two segments, Content & Entertainment, and Cinema Equipment, from which Content & Entertainment derives the majority of its revenues.
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