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Cyxtera Technologies (Cyxtera Technologies) Gross Margin % : 47.23% (As of Mar. 2023)


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What is Cyxtera Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cyxtera Technologies's Gross Profit for the three months ended in Mar. 2023 was $92.9 Mil. Cyxtera Technologies's Revenue for the three months ended in Mar. 2023 was $196.7 Mil. Therefore, Cyxtera Technologies's Gross Margin % for the quarter that ended in Mar. 2023 was 47.23%.


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


CYXTQ's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.76
* Ranked among companies with meaningful Gross Margin % only.

Cyxtera Technologies had a gross margin of 47.23% for the quarter that ended in Mar. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cyxtera Technologies was 0.00% per year.


Cyxtera Technologies Gross Margin % Historical Data

The historical data trend for Cyxtera Technologies'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.

Cyxtera Technologies Gross Margin % Chart

Cyxtera Technologies Annual Data
Trend Dec20 Dec21 Dec22
Gross Margin %
43.45 44.51 46.11

Cyxtera Technologies Quarterly Data
Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 46.27 46.55 46.25 45.44 47.23

Competitive Comparison of Cyxtera Technologies's Gross Margin %

For the Information Technology Services subindustry, Cyxtera Technologies'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.


Cyxtera Technologies's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Cyxtera Technologies's Gross Margin % falls into.



Cyxtera Technologies Gross Margin % Calculation

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

Cyxtera Technologies's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=344 / 746
=(Revenue - Cost of Goods Sold) / Revenue
=(746 - 402) / 746
=46.11 %

Cyxtera Technologies's Gross Margin for the quarter that ended in Mar. 2023 is calculated as


Gross Margin % (Q: Mar. 2023 )=Gross Profit (Q: Mar. 2023 ) / Revenue (Q: Mar. 2023 )
=92.9 / 196.7
=(Revenue - Cost of Goods Sold) / Revenue
=(196.7 - 103.8) / 196.7
=47.23 %

* 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.


Cyxtera Technologies  (OTCPK:CYXTQ) 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

Cyxtera Technologies had a gross margin of 47.23% for the quarter that ended in Mar. 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.


Cyxtera Technologies Gross Margin % Related Terms

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Cyxtera Technologies (Cyxtera Technologies) Business Description

Traded in Other Exchanges
N/A
Address
2333 Ponce De Leon Boulevard, Suite 900, Coral Gables, FL, USA, 33134
Cyxtera Technologies Inc is engaged in data center colocation and interconnection services. The company operates a footprint of more than 60 data centers around the world, providing services to more than 2,300 leading enterprises and U.S. federal government agencies. Cyxtera brings proven operational excellence, global scale, flexibility and customer-focused innovation together to provide a comprehensive portfolio of data center and interconnection services.
Executives
Jeffrey C Smith director, 10 percent owner 201 E LAS OLAS BOULEVARD, SUITE 1000, FORT LAUDERDALE FL 33301
Starboard Value Lp director, 10 percent owner 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017
Starboard Value & Opportunity Master Fund L Lp director, 10 percent owner 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017
Scott D. Vogel director 885 PARK AVENUE, NEW YORK NY 10075
Frederick Arnold director CHATSWORTH ADVISORS, INC., 3 YORK ROAD, LARCHMONT NY 10538
Roger Meltzer director 80 PINE STREET, C/O CAHILL GORDON& REINDELL LLP, NEW YORK NY 10005
Benjamin Phillips director 2 ALHAMBRA PLAZA, SUITE PH-1-B, CORAL GABLES FL 33134
James Randolph Rowland officer: Chief Operating Officer C/O CYXTERA TECHNOLOGIES, INC., 2333 PONCE DE LEON, SUITE 900, CORAL CABLES FL 33134
Victor Semah officer: Chief Legal Officer C/O CYXTERA TECHNOLOGIES, INC., 2333 PONCE DE LEON, SUITE 900, CORAL CABLES FL 33134
Carlos Ignacio Sagasta officer: Chief Financial Officer C/O CYXTERA TECHNOLOGIES, INC., 2333 PONCE DE LEON, SUITE 900, CORAL CABLES FL 33134
Fonseca Nelson A. Jr director, officer: See Remarks ONE BISCAYNE TOWER, 2 S. BISCAYNE BLVD, SUITE 2800, MIAMI FL 33131
Edmundo Miranda officer: See Remarks C/O SPIRIT AIRLINES, INC., 2800 EXECUTIVE WAY, MIRAMAR FL 33025
Bcec-sis Holdings L.p. 10 percent owner ARNOLD HOUSE PO BOX 273, ST JULIAN'S AVENUE, ST PETER PORT Y7 GY1 3RD
Gregory L Waters director ONSEMI C/O H. SPENCER, 5701 NORTH PIMA ROAD, SCOTTSDALE AZ 85250
Starboard Value L Lp director, 10 percent owner 777 THIRD AVENUE, 18TH FLOOR, NEW YORK NY 10017

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