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Haivision Systems (TSX:HAI) Gross Margin % : 72.86% (As of Jan. 2024)


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What is Haivision Systems Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Haivision Systems's Gross Profit for the three months ended in Jan. 2024 was C$25.2 Mil. Haivision Systems's Revenue for the three months ended in Jan. 2024 was C$34.6 Mil. Therefore, Haivision Systems's Gross Margin % for the quarter that ended in Jan. 2024 was 72.86%.

Warning Sign:

Haivision Systems Inc gross margin has been in long-term decline. The average rate of decline per year is -2%.


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

TSX:HAI' s Gross Margin % Range Over the Past 10 Years
Min: 68.68   Med: 74.87   Max: 76.7
Current: 72.03


During the past 7 years, the highest Gross Margin % of Haivision Systems was 76.70%. The lowest was 68.68%. And the median was 74.87%.

TSX:HAI's Gross Margin % is ranked better than
80.42% of 2635 companies
in the Software industry
Industry Median: 41.74 vs TSX:HAI: 72.03

Haivision Systems had a gross margin of 72.86% for the quarter that ended in Jan. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Haivision Systems was -2.00% per year.


Haivision Systems Gross Margin % Historical Data

The historical data trend for Haivision Systems'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.

Haivision Systems Gross Margin % Chart

Haivision Systems Annual Data
Trend Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Gross Margin %
Get a 7-Day Free Trial 75.13 76.70 74.87 68.68 70.49

Haivision Systems Quarterly Data
Oct18 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 66.55 68.92 71.89 74.42 72.86

Competitive Comparison of Haivision Systems's Gross Margin %

For the Software - Infrastructure subindustry, Haivision Systems'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.


Haivision Systems's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Haivision Systems's Gross Margin % falls into.



Haivision Systems Gross Margin % Calculation

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

Haivision Systems's Gross Margin for the fiscal year that ended in Oct. 2023 is calculated as

Gross Margin % (A: Oct. 2023 )=Gross Profit (A: Oct. 2023 ) / Revenue (A: Oct. 2023 )
=98.6 / 139.857
=(Revenue - Cost of Goods Sold) / Revenue
=(139.857 - 41.272) / 139.857
=70.49 %

Haivision Systems's Gross Margin for the quarter that ended in Jan. 2024 is calculated as


Gross Margin % (Q: Jan. 2024 )=Gross Profit (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=25.2 / 34.579
=(Revenue - Cost of Goods Sold) / Revenue
=(34.579 - 9.386) / 34.579
=72.86 %

* 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.


Haivision Systems  (TSX:HAI) 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

Haivision Systems had a gross margin of 72.86% for the quarter that ended in Jan. 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.


Haivision Systems Gross Margin % Related Terms

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


Haivision Systems (TSX:HAI) Business Description

Traded in Other Exchanges
Address
2600 Boulevard Alfred Nobel, 5th Floor, Montreal, QC, CAN, H4S 0A9
Haivision Systems Inc is a provider of infrastructure solutions for the video streaming market, servicing enterprises and governments globally. The organizations use company solutions to communicate, collaborate and educate customers and stakeholders. It delivers high quality, low latency, secure and reliable video through the entire IP video lifecycle, using a broad range of software, hardware, and services. Its geographical segments are Canada, International, and the United States, of which the majority of its revenue comes from the United States.
Executives
Miroslav Wicha 10% Security Holder, Director, Senior Officer

Haivision Systems (TSX:HAI) Headlines

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