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IVU Traffic Technologies AG (XTER:IVU) Gross Margin % : -45.20% (As of Dec. 2023)


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What is IVU Traffic Technologies AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. IVU Traffic Technologies AG's Gross Profit for the three months ended in Dec. 2023 was €-20.8 Mil. IVU Traffic Technologies AG's Revenue for the three months ended in Dec. 2023 was €46.0 Mil. Therefore, IVU Traffic Technologies AG's Gross Margin % for the quarter that ended in Dec. 2023 was -45.20%.

Warning Sign:

IVU Traffic Technologies AG gross margin has been in long-term decline. The average rate of decline per year is -14%.


The historical rank and industry rank for IVU Traffic Technologies AG's Gross Margin % or its related term are showing as below:

XTER:IVU' s Gross Margin % Range Over the Past 10 Years
Min: 30.47   Med: 33.46   Max: 69.55
Current: 35.14


During the past 13 years, the highest Gross Margin % of IVU Traffic Technologies AG was 69.55%. The lowest was 30.47%. And the median was 33.46%.

XTER:IVU's Gross Margin % is ranked worse than
58.64% of 2628 companies
in the Software industry
Industry Median: 41.73 vs XTER:IVU: 35.14

IVU Traffic Technologies AG had a gross margin of -45.20% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for IVU Traffic Technologies AG was -14.00% per year.


IVU Traffic Technologies AG Gross Margin % Historical Data

The historical data trend for IVU Traffic Technologies AG'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.

IVU Traffic Technologies AG Gross Margin % Chart

IVU Traffic Technologies AG 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 69.55 31.27 31.60 33.39 35.14

IVU Traffic Technologies AG Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -54.50 84.96 80.70 84.52 -45.20

Competitive Comparison of IVU Traffic Technologies AG's Gross Margin %

For the Software - Application subindustry, IVU Traffic Technologies AG'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.


IVU Traffic Technologies AG's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, IVU Traffic Technologies AG's Gross Margin % distribution charts can be found below:

* The bar in red indicates where IVU Traffic Technologies AG's Gross Margin % falls into.



IVU Traffic Technologies AG Gross Margin % Calculation

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

IVU Traffic Technologies AG'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 )
=43.1 / 122.748
=(Revenue - Cost of Goods Sold) / Revenue
=(122.748 - 79.609) / 122.748
=35.14 %

IVU Traffic Technologies AG'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 )
=-20.8 / 46.02
=(Revenue - Cost of Goods Sold) / Revenue
=(46.02 - 66.819) / 46.02
=-45.20 %

* 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.


IVU Traffic Technologies AG  (XTER:IVU) 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

IVU Traffic Technologies AG had a gross margin of -45.20% for the quarter that ended in Dec. 2023 => 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.


IVU Traffic Technologies AG Gross Margin % Related Terms

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


IVU Traffic Technologies AG (XTER:IVU) Business Description

Traded in Other Exchanges
Address
Bundesallee 88, Berlin, DEU, 12161
IVU Traffic Technologies AG is a Germany-based software company. It is engaged in the development, manufacturing, and marketing of software and hardware. It provides installation and maintenance of IT solutions for the operational tasks of public passenger and freight transport. Its product consists of IVU. suite, IVU.rail, IVU.cloud, and many more. The company's business area of operations includes countries like Germany, Europe, and others in which it generates the majority of its revenue from Germany.
Executives
Leon Struijk Board of Directors
Ute Witt Supervisory Board
Timo Kirst Managing Director
Matthias Rust Board of Directors
Martin Müller-elschner Board of Directors

IVU Traffic Technologies AG (XTER:IVU) Headlines

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