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NHN KCP (XKRX:060250) Gross Margin % : 9.09% (As of Mar. 2024)


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What is NHN KCP Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. NHN KCP's Gross Profit for the three months ended in Mar. 2024 was ₩24,377 Mil. NHN KCP's Revenue for the three months ended in Mar. 2024 was ₩268,164 Mil. Therefore, NHN KCP's Gross Margin % for the quarter that ended in Mar. 2024 was 9.09%.

Warning Sign:

NHN KCP Corp 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 NHN KCP's Gross Margin % or its related term are showing as below:

XKRX:060250' s Gross Margin % Range Over the Past 10 Years
Min: 9.39   Med: 12.37   Max: 16.94
Current: 9.39


During the past 13 years, the highest Gross Margin % of NHN KCP was 16.94%. The lowest was 9.39%. And the median was 12.37%.

XKRX:060250's Gross Margin % is ranked worse than
92.87% of 2638 companies
in the Software industry
Industry Median: 41.84 vs XKRX:060250: 9.39

NHN KCP had a gross margin of 9.09% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NHN KCP was -5.90% per year.


NHN KCP Gross Margin % Historical Data

The historical data trend for NHN KCP'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.

NHN KCP Gross Margin % Chart

NHN KCP 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 14.42 12.53 11.34 10.99 9.51

NHN KCP 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 9.53 9.66 9.68 9.19 9.09

Competitive Comparison of NHN KCP's Gross Margin %

For the Software - Infrastructure subindustry, NHN KCP'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.


NHN KCP's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where NHN KCP's Gross Margin % falls into.



NHN KCP Gross Margin % Calculation

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

NHN KCP'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 )
=92397.7 / 972016.222
=(Revenue - Cost of Goods Sold) / Revenue
=(972016.222 - 879618.476) / 972016.222
=9.51 %

NHN KCP'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 )
=24377.3 / 268164.002
=(Revenue - Cost of Goods Sold) / Revenue
=(268164.002 - 243786.738) / 268164.002
=9.09 %

* 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.


NHN KCP  (XKRX:060250) 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

NHN KCP had a gross margin of 9.09% for the quarter that ended in Mar. 2024 => No sustainable 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.


NHN KCP Gross Margin % Related Terms

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NHN KCP (XKRX:060250) Business Description

Traded in Other Exchanges
N/A
Address
170-5, Guro-dong, Guro-gu, Seoul, KOR, 152-050
NHN KCP Corp is engaged in the online payment business. NHN KCP organizes its business operations into four segments: Payment Gateway Service, VAN Service, Smart Service, and Additional Services. Payment Gateway Service comprises general payments, periodic accounting, electronic payments by ARS. VAN Service includes online payment processing by credit card, IC card, and points card. Smart Service consists payment service by smart devices. Its additional services comprised mobile phone authentication service and mobile student ID. The company is one of the principal market share holders in the internet shopping mall transactions and the online VAN services in Korea.

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