NEO Finance AB (OVSE:NEOFI) Gross Margin % : 42.14% (As of Dec. 2023)

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What is NEO Finance AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NEO Finance AB's Gross Profit for the three months ended in Dec. 2023 was €0.56 Mil. NEO Finance AB's Revenue for the three months ended in Dec. 2023 was €1.34 Mil. Therefore, NEO Finance AB's Gross Margin % for the quarter that ended in Dec. 2023 was 42.14%.

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

OVSE:NEOFI' s Gross Margin % Range Over the Past 10 Years
Min: -50.31 Med: 35.68 Max: 53.26
Current: 49.4

During the past 7 years, the highest Gross Margin % of NEO Finance AB was 53.26%. The lowest was -50.31%. And the median was 35.68%.

OVSE:NEOFI's Gross Margin % is ranked worse than
57.26% of 358 companies
in the Credit Services industry
Industry Median: 54.005 vs OVSE:NEOFI: 49.40

NEO Finance AB had a gross margin of 42.14% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NEO Finance AB was 24.20% per year.

NEO Finance AB Gross Margin % Historical Data

The historical data trend for NEO Finance 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.

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NEO Finance AB Gross Margin % Chart

NEO Finance AB Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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11.14

35.68

48.59

53.26

49.41

NEO Finance AB Quarterly Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial												57.70	52.47	51.28	53.21	42.14

Competitive Comparison of NEO Finance AB's Gross Margin %

For the Credit Services subindustry, NEO Finance 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.

NEO Finance AB's Gross Margin % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, NEO Finance AB's Gross Margin % distribution charts can be found below:

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

NEO Finance AB Gross Margin % Calculation

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

NEO Finance 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 )
	=	2.3	/	4.625
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4.625 - 2.34)	/	4.625
	=	49.41 %

NEO Finance 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 )
	=	0.6	/	1.336
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.336 - 0.773)	/	1.336
	=	42.14 %

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.

NEO Finance AB (OVSE:NEOFI) 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

NEO Finance AB had a gross margin of 42.14% 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.

NEO Finance AB Gross Margin % Related Terms

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NEO Finance AB (OVSE:NEOFI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » NEO Finance AB (OVSE:NEOFI) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

A. Vivulskio Street 7, Vilnius, LTU, LT-03162

Website

https://www.neofinance.com

NEO Finance AB is engaged in peer-to-peer lending services. It owns and operates a Peer-to-peer lending platform that enables retail Lenders to lend money directly to retail borrowers. The company generates its revenues via the lending platform in two main ways: intermediary fee charged from borrowers on installments made and by interest made by co-investing with lenders.

NEO Finance AB (OVSE:NEOFI) Headlines

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