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Euronet Worldwide (Euronet Worldwide) Gross Margin % : 37.73% (As of Dec. 2023)


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What is Euronet Worldwide Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Euronet Worldwide's Gross Profit for the three months ended in Dec. 2023 was $361 Mil. Euronet Worldwide's Revenue for the three months ended in Dec. 2023 was $958 Mil. Therefore, Euronet Worldwide's Gross Margin % for the quarter that ended in Dec. 2023 was 37.73%.

Warning Sign:

Euronet Worldwide Inc gross margin has been in long-term decline. The average rate of decline per year is -1.3%.


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

EEFT' s Gross Margin % Range Over the Past 10 Years
Min: 36.49   Med: 39.76   Max: 43.4
Current: 39.73


During the past 13 years, the highest Gross Margin % of Euronet Worldwide was 43.40%. The lowest was 36.49%. And the median was 39.76%.

EEFT's Gross Margin % is ranked worse than
52.47% of 2628 companies
in the Software industry
Industry Median: 41.685 vs EEFT: 39.73

Euronet Worldwide had a gross margin of 37.73% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Euronet Worldwide was -1.30% per year.


Euronet Worldwide Gross Margin % Historical Data

The historical data trend for Euronet Worldwide'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.

Euronet Worldwide Gross Margin % Chart

Euronet Worldwide 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 43.40 36.49 36.56 39.91 39.73

Euronet Worldwide 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 38.40 37.55 40.57 42.56 37.73

Competitive Comparison of Euronet Worldwide's Gross Margin %

For the Software - Infrastructure subindustry, Euronet Worldwide'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.


Euronet Worldwide's Gross Margin % Distribution in the Software Industry

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

* The bar in red indicates where Euronet Worldwide's Gross Margin % falls into.



Euronet Worldwide Gross Margin % Calculation

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

Euronet Worldwide'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 )
=1465.2 / 3688
=(Revenue - Cost of Goods Sold) / Revenue
=(3688 - 2222.8) / 3688
=39.73 %

Euronet Worldwide'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 )
=361.3 / 957.7
=(Revenue - Cost of Goods Sold) / Revenue
=(957.7 - 596.4) / 957.7
=37.73 %

* 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.


Euronet Worldwide  (NAS:EEFT) 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

Euronet Worldwide had a gross margin of 37.73% for the quarter that ended in Dec. 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.


Euronet Worldwide Gross Margin % Related Terms

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


Euronet Worldwide (Euronet Worldwide) Business Description

Traded in Other Exchanges
Address
11400 Tomahawk Creek Parkway, Suite 300, Leawood, KS, USA, 66211
Euronet Worldwide Inc is a provider of electronic financial transaction solutions. The company operates an independent network of ATMs in Europe, along with a network for prepaid products such as mobile top-ups, and processes point-of-sale transactions. Euronet Worldwide also offers global money transfers, payment services and software, banking services, credit and debit card outsourcing services, and card issuing and merchant acquiring services. The largest segment by operating income, electronical financial transaction processing, mainly generates revenue from monthly ATM management fees and currency conversion transactions. The largest country by revenue is the United States of America.
Executives
Michael J Brown director, officer: CEO & President C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Fentanes Ligia Torres director 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
M Jeannine Strandjord director
Andrej Olechowski director WIERETNICZA 51, WARSAW POLAND R9 92200
Juan Bianchi officer: Executive Vice President C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Rick Weller officer: Chief Financial Officer/ EVP C/O EURONET WORLDWIDE, INC, 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEADWOOD KS 66211
Michael N Frumkin director C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Scott Claassen officer: General Counsel and Secretary C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Jeffrey B Newman officer: Exec VP and General Counsel C/O EURONET WORLDWIDE, INC., 3500 COLLEGE BOULEVARD, LEAWOOD KS 66211
Martin L. Bruckner officer: SVP - Chief Technology Officer C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Nikos Fountas officer: Managing Director EMEA EFT Div C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Kevin J Caponecchi officer: President C/O EURONET WORLDWIDE, INC, 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Eriberto R Scocimara director C/O QUAKER FABRIC CORP, 941 GRINNELL ST, FALL RIVER MA 02726
Mark R Callegari director C/O EURONET WORLDWIDE, INC., 11400 TOMAHAWK CREEK PARKWAY, SUITE 300, LEAWOOD KS 66211
Andrew B Schmitt director 1900 SHAWNEE MISSION PKWY, MISSION WOODS KS 66205