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Zefiro Methane (NEOE:ZEFI) Gross Margin % : 31.12% (As of Mar. 2024)


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What is Zefiro Methane Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zefiro Methane's Gross Profit for the three months ended in Mar. 2024 was C$3.60 Mil. Zefiro Methane's Revenue for the three months ended in Mar. 2024 was C$11.56 Mil. Therefore, Zefiro Methane's Gross Margin % for the quarter that ended in Mar. 2024 was 31.12%.


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

NEOE:ZEFI' s Gross Margin % Range Over the Past 10 Years
Min: 32.81   Med: 48.74   Max: 48.74
Current: 32.81


During the past 2 years, the highest Gross Margin % of Zefiro Methane was 48.74%. The lowest was 32.81%. And the median was 48.74%.

NEOE:ZEFI's Gross Margin % is ranked worse than
61.67% of 2635 companies
in the Software industry
Industry Median: 41.84 vs NEOE:ZEFI: 32.81

Zefiro Methane had a gross margin of 31.12% for the quarter that ended in Mar. 2024 => Competition eroding margins

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


Zefiro Methane Gross Margin % Historical Data

The historical data trend for Zefiro Methane'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.

Zefiro Methane Gross Margin % Chart

Zefiro Methane Annual Data
Trend Jun22 Jun23
Gross Margin %
- 48.74

Zefiro Methane Quarterly Data
Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only - 48.74 28.51 26.20 31.12

Competitive Comparison of Zefiro Methane's Gross Margin %

For the Information Technology Services subindustry, Zefiro Methane'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.


Zefiro Methane's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Zefiro Methane's Gross Margin % falls into.



Zefiro Methane Gross Margin % Calculation

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

Zefiro Methane's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=3.9 / 7.948
=(Revenue - Cost of Goods Sold) / Revenue
=(7.948 - 4.074) / 7.948
=48.74 %

Zefiro Methane'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 )
=3.6 / 11.558
=(Revenue - Cost of Goods Sold) / Revenue
=(11.558 - 7.961) / 11.558
=31.12 %

* 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.


Zefiro Methane  (NEOE:ZEFI) 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

Zefiro Methane had a gross margin of 31.12% for the quarter that ended in Mar. 2024 => 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.


Zefiro Methane Gross Margin % Related Terms

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Zefiro Methane (NEOE:ZEFI) Business Description

Comparable Companies
Traded in Other Exchanges
Address
550 Burrard Street, Suite 2501, Bentall 5, Vancouver, BC, CAN, V6C 2B5
Zefiro Methane Corp is in the business of providing end-of-life solutions for industrial oil and gas operations that currently or potentially emit harmful greenhouse gas (GHG) emissions, specifically methane released from orphaned and abandoned oil and gas wells or associated midstream assets. The Company seeks to generate carbon credits, which can then be sold into carbon credit markets, by reducing methane emissions through the plugging of orphaned and abandoned oil and gas wells.
Executives
Talal Debs Director, Senior Officer

Zefiro Methane (NEOE:ZEFI) Headlines

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