Gross Margin % is calculated as gross profit divided by its revenue. MicroAlgo's Gross Profit for the
six
months ended in Dec. 2023 was $12.93 Mil. MicroAlgo's Revenue for the
six
months ended in Dec. 2023 was $43.82 Mil. Therefore, MicroAlgo's Gross Margin % for the quarter that ended in Dec. 2023 was 29.51%.
The historical rank and industry rank for MicroAlgo's Gross Margin % or its related term are showing as below:
MLGO'
s Gross Margin % Range Over the Past 10 Years
Min: 21.75 Med: 35.19 Max: 40.67
Current: 30
During the past 4 years, the highestGross Margin % of MicroAlgo was 40.67%. The lowest was 21.75%. And the median was 35.19%.
MLGO's Gross Margin % is ranked worse than 65.18% of 2631
companies
in the Software industry
Industry Median: 41.74
vs MLGO: 30.00
MicroAlgo had a gross margin of 29.51% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for MicroAlgo was 0.00% per year.
MicroAlgo Gross Margin % Historical Data
The historical data trend for MicroAlgo'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 MicroAlgo's Gross Margin %
For the Software - Infrastructure subindustry, MicroAlgo'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.
MicroAlgo's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, MicroAlgo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MicroAlgo'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.
MicroAlgo (NAS:MLGO) 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
MicroAlgo had a gross margin of 29.51% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
MicroAlgo Gross Margin % Related Terms
Thank you for viewing the detailed overview of MicroAlgo's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Taoyuan Street, Unit 507, Building C, Long Jing High & New Technology Jingu Pioneer Park, Nanshan District, Shenzhen, CHN, 518052
Website
MicroAlgo Inc is divided into two segments Central processing algorithm services & Intelligent chips and services. The majority is from the Central processing algorithm services. which refer to a range of computing algorithms, analytical algorithms, recommendation algorithms, & acceleration algorithms. The businesses engaged in internet advertisement, game development, intelligent chip design, finance, retail, & logistics depend on the ability to process & analyze data with optimized computing software & hardware capable of handling the data workload. Intelligent chips & services revenues include revenues generated from the resale of intelligent chips. All of the Company's net revenues were generated in the PRC, Hong Kong, & Singapore, out of which the majority is from the PRC.
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