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Precise Biometrics AB (OSTO:PREC) Gross Margin % : 72.21% (As of Mar. 2024)


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What is Precise Biometrics AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Precise Biometrics AB's Gross Profit for the three months ended in Mar. 2024 was kr15.66 Mil. Precise Biometrics AB's Revenue for the three months ended in Mar. 2024 was kr21.68 Mil. Therefore, Precise Biometrics AB's Gross Margin % for the quarter that ended in Mar. 2024 was 72.21%.

Warning Sign:

Precise Biometrics AB gross margin has been in long-term decline. The average rate of decline per year is -5.9%.


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

OSTO:PREC' s Gross Margin % Range Over the Past 10 Years
Min: 54.73   Med: 80.24   Max: 97.98
Current: 65.81


During the past 13 years, the highest Gross Margin % of Precise Biometrics AB was 97.98%. The lowest was 54.73%. And the median was 80.24%.

OSTO:PREC's Gross Margin % is ranked better than
83.08% of 987 companies
in the Business Services industry
Industry Median: 34.38 vs OSTO:PREC: 65.81

Precise Biometrics AB had a gross margin of 72.21% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Precise Biometrics AB was -5.90% per year.


Precise Biometrics AB Gross Margin % Historical Data

The historical data trend for Precise Biometrics 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.

Precise Biometrics AB Gross Margin % Chart

Precise Biometrics AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 86.43 84.21 76.26 71.45 63.71

Precise Biometrics AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 Premium Member Only 64.80 60.33 64.05 65.35 72.21

Competitive Comparison of Precise Biometrics AB's Gross Margin %

For the Security & Protection Services subindustry, Precise Biometrics 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.


Precise Biometrics AB's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Precise Biometrics AB's Gross Margin % distribution charts can be found below:

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



Precise Biometrics AB Gross Margin % Calculation

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

Precise Biometrics 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 )
=47.8 / 75.069
=(Revenue - Cost of Goods Sold) / Revenue
=(75.069 - 27.246) / 75.069
=63.71 %

Precise Biometrics AB'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 )
=15.7 / 21.684
=(Revenue - Cost of Goods Sold) / Revenue
=(21.684 - 6.027) / 21.684
=72.21 %

* 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.


Precise Biometrics AB  (OSTO:PREC) 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

Precise Biometrics AB had a gross margin of 72.21% for the quarter that ended in Mar. 2024 => 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.


Precise Biometrics AB Gross Margin % Related Terms

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Precise Biometrics AB (OSTO:PREC) Business Description

Traded in Other Exchanges
Address
Precise Biometrics AB, Scheelevagen 27, Lund, SWE, SE-223 63
Precise Biometrics AB is engaged in the business of developing and selling fingerprint software for the authentication of people's identity in mobile phones, smart cards, and products with small fingerprint sensors. The firm also develops and sells mobile smart card readers for smartphones and tablets. Its products and services include precise bio match mobile, sensor vulnerability test, and fingerprint data collection. Overall it focuses on the areas of Capacitive sensors for mobile phones, In-display sensors for mobile phones in the upper price segment, Smart cards, and New applications. The company operates in Europe, Asia, and the United States, out of which the majority of revenue comes from Asia.

Precise Biometrics AB (OSTO:PREC) Headlines

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