The historical rank and industry rank for American Software's Gross Margin % or its related term are showing as below:
AMSWA'
s Gross Margin % Range Over the Past 10 Years
Min: 50.95 Med: 54.72 Max: 60.08
Current: 57.84
During the past 13 years, the highestGross Margin % of American Software was 60.08%. The lowest was 50.95%. And the median was 54.72%.
AMSWA's Gross Margin % is ranked better than 66.17% of 2628
companies
in the Software industry
Industry Median: 41.71
vs AMSWA: 57.84
American Software had a gross margin of 64.40% for the quarter that ended in Jan. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for American Software was 2.20% per year.
American Software Gross Margin % Historical Data
The historical data trend for American Software'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 American Software's Gross Margin %
For the Software - Application subindustry, American Software'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.
American Software's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, American Software's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American Software'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.
American Software (NAS:AMSWA) 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
American Software had a gross margin of 64.40% 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.
American Software Gross Margin % Related Terms
Thank you for viewing the detailed overview of American Software's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
American Software (American Software) Business Description
American Software Inc develops enterprise management and supply chain-related software and services. Its software and services bring business value to companies by supporting their operations over cloud-based Internet-architected solutions. The company's operating segments inlcude Supply Chain Management (SCM); Information Technology Consulting (IT Consulting) and Others. It generates maximum revenue from the Supply Chain Management segment. SCM segment provides collaborative supply chain solutions to streamline and optimize the production, distribution, and management of products between trading partners. Its solutions consist of global sourcing, workflow management, customer service applications, and ERP solutions.
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