TTEC Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for TTEC Holdings's Gross Margin % or its related term are showing as below:
STU:TH1'
s Gross Margin % Range Over the Past 10 Years
Min: 20.87 Med: 24.95 Max: 28.61
Current: 20.87
During the past 13 years, the highestGross Margin % of TTEC Holdings was 28.61%. The lowest was 20.87%. And the median was 24.95%.
STU:TH1's Gross Margin % is ranked worse than 80.72% of 2640
companies
in the Software industry
Industry Median: 41.76
vs STU:TH1: 20.87
TTEC Holdings had a gross margin of 21.30% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for TTEC Holdings was -1.30% per year.
TTEC Holdings Gross Margin % Historical Data
The historical data trend for TTEC Holdings'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 TTEC Holdings's Gross Margin %
For the Information Technology Services subindustry, TTEC Holdings'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.
TTEC Holdings's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, TTEC Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TTEC Holdings'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.
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
TTEC Holdings had a gross margin of 21.30% 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.
TTEC Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of TTEC Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
TTEC Holdings Inc provides customer engagement management tools and services. The company operates through four operating segments that are organized into two groups, TTEC Digital and TTEC Engage. TTEC Digital is engaged in building and implementing cloud-based and on-premises customer experience tools that enable clients to develop customer engagement strategies. TTEC Engage focuses on delivering sales and marketing solutions to help clients boost their revenue as well as on managing customer's front-to-back office processes to optimize the customer experience. TTEC Engage contributes the vast majority of the company's revenue, and most of the sales are derived from the United States and Canada, followed by Philippines, Asia-Pacific and India.
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