POSaBIT Systems (XCNQ:PBIT) Gross Margin % : 23.45% (As of Sep. 2023)

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What is POSaBIT Systems Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. POSaBIT Systems's Gross Profit for the three months ended in Sep. 2023 was C$4.31 Mil. POSaBIT Systems's Revenue for the three months ended in Sep. 2023 was C$18.38 Mil. Therefore, POSaBIT Systems's Gross Margin % for the quarter that ended in Sep. 2023 was 23.45%.

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

XCNQ:PBIT' s Gross Margin % Range Over the Past 10 Years
Min: 8.63 Med: 24.27 Max: 45.34
Current: 38.62

During the past 6 years, the highest Gross Margin % of POSaBIT Systems was 45.34%. The lowest was 8.63%. And the median was 24.27%.

XCNQ:PBIT's Gross Margin % is ranked worse than
54.31% of 2631 companies
in the Software industry
Industry Median: 41.74 vs XCNQ:PBIT: 38.62

POSaBIT Systems had a gross margin of 23.45% for the quarter that ended in Sep. 2023 => Competition eroding margins

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

POSaBIT Systems Gross Margin % Historical Data

The historical data trend for POSaBIT 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.

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POSaBIT Systems Gross Margin % Chart

POSaBIT Systems Annual Data

Trend

Oct17

Oct18

Dec19

Dec20

Dec21

Dec22

Gross Margin %

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8.63

22.18

26.35

45.34

POSaBIT Systems Quarterly Data
	Oct18	Jan19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Margin %	Get a 7-Day Free Trial															28.02	65.17	20.22	20.18	23.45

Competitive Comparison of POSaBIT Systems's Gross Margin %

For the Information Technology Services subindustry, POSaBIT 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.

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

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

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

POSaBIT Systems Gross Margin % Calculation

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

POSaBIT Systems's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	30.7	/	67.615
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(67.615 - 36.959)	/	67.615
	=	45.34 %

POSaBIT Systems's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	4.3	/	18.383
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(18.383 - 14.072)	/	18.383
	=	23.45 %

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.

POSaBIT Systems (XCNQ:PBIT) 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

POSaBIT Systems had a gross margin of 23.45% for the quarter that ended in Sep. 2023 => 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.

POSaBIT Systems Gross Margin % Related Terms

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POSaBIT Systems (XCNQ:PBIT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » POSaBIT Systems Corp (XCNQ:PBIT) » Definitions » Gross Margin %

Comparable Companies

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POSAF:USA

Address

11915 124th Ave NE, Kirkland, WA, USA, 98034

Website

https://www.posabit.com

POSaBIT Systems Corp is a financial technology company. The company involves the point-of-sale arrangements designed to offer consumers an easy way to purchase goods and services. The company offers Payment Services and Point-of-Sale (POS) Services. The majority of its revenue comes from Payment Services, which generates revenues via setup costs, hardware costs, transaction fees, and convenience fees. Its geographical segments are Canada and the United States, of which all of its revenues come from the United States.

Executives

Alex Sharp

10% Security Holder

POSaBIT Systems (XCNQ:PBIT) Headlines

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