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Circhem AB (OSTO:CIRCHE) Gross Margin % : 104.66% (As of Dec. 2023)


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What is Circhem AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Circhem AB's Gross Profit for the three months ended in Dec. 2023 was kr3.71 Mil. Circhem AB's Revenue for the three months ended in Dec. 2023 was kr3.54 Mil. Therefore, Circhem AB's Gross Margin % for the quarter that ended in Dec. 2023 was 104.66%.


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

OSTO:CIRCHE' s Gross Margin % Range Over the Past 10 Years
Min: 52.83   Med: 2953.42   Max: 24905.26
Current: 52.84


During the past 7 years, the highest Gross Margin % of Circhem AB was 24905.26%. The lowest was 52.83%. And the median was 2953.42%.

OSTO:CIRCHE's Gross Margin % is ranked better than
86.67% of 225 companies
in the Waste Management industry
Industry Median: 28.65 vs OSTO:CIRCHE: 52.84

Circhem AB had a gross margin of 104.66% for the quarter that ended in Dec. 2023 => Durable competitive advantage

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


Circhem AB Gross Margin % Historical Data

The historical data trend for Circhem AB'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.

Circhem AB Gross Margin % Chart

Circhem AB Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 24,905.26 2,953.42 3,043.02 494.42 52.83

Circhem AB Quarterly Data
Dec17 Dec18 Dec19 Mar20 Jun20 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 Premium Member Only Premium Member Only 19.07 -160.99 -9.59 47.62 104.66

Competitive Comparison of Circhem AB's Gross Margin %

For the Waste Management subindustry, Circhem AB'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.


Circhem AB's Gross Margin % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Circhem AB's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Circhem AB's Gross Margin % falls into.



Circhem AB Gross Margin % Calculation

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

Circhem AB'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 )
=3 / 5.745
=(Revenue - Cost of Goods Sold) / Revenue
=(5.745 - 2.71) / 5.745
=52.83 %

Circhem AB'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 )
=3.7 / 3.54
=(Revenue - Cost of Goods Sold) / Revenue
=(3.54 - -0.165) / 3.54
=104.66 %

* 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.


Circhem AB  (OSTO:CIRCHE) 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

Circhem AB had a gross margin of 104.66% 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.


Circhem AB Gross Margin % Related Terms

Thank you for viewing the detailed overview of Circhem AB's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Circhem AB (OSTO:CIRCHE) Business Description

Traded in Other Exchanges
N/A
Address
Malderistvagen 3, Vargon, SWE, 468 30
Circhem AB is primarily involved in the solvent recycling process which includes recycling and purification of industrial chemicals. It offers solution that enables the industry to reduce its emissions and at the same time increase profitability.

Circhem AB (OSTO:CIRCHE) Headlines

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