IHS Markit (IHS Markit) Gross Margin % : 62.46% (As of Nov. 2021)

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What is IHS Markit Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. IHS Markit's Gross Profit for the three months ended in Nov. 2021 was $735 Mil. IHS Markit's Revenue for the three months ended in Nov. 2021 was $1,176 Mil. Therefore, IHS Markit's Gross Margin % for the quarter that ended in Nov. 2021 was 62.46%.

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

INFO' s Gross Margin % Range Over the Past 10 Years
Min: 59.18 Med: 62.49 Max: 63.33
Current: 63.33

During the past 13 years, the highest Gross Margin % of IHS Markit was 63.33%. The lowest was 59.18%. And the median was 62.49%.

INFO's Gross Margin % is not ranked
in the Business Services industry.
Industry Median: 34.32 vs INFO: 63.33

IHS Markit had a gross margin of 62.46% for the quarter that ended in Nov. 2021 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for IHS Markit was 0.30% per year.

IHS Markit Gross Margin % Historical Data

The historical data trend for IHS Markit'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.

IHS Markit Gross Margin % Chart

IHS Markit Annual Data

Trend

Nov12

Nov13

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Gross Margin %

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62.54

62.69

62.47

62.92

63.33

IHS Markit Quarterly Data
	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21
Gross Margin %	Get a 7-Day Free Trial															63.85	62.93	63.96	63.94	62.46

Competitive Comparison of IHS Markit's Gross Margin %

For the Consulting Services subindustry, IHS Markit'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.

IHS Markit's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, IHS Markit's Gross Margin % distribution charts can be found below:

* The bar in red indicates where IHS Markit's Gross Margin % falls into.

IHS Markit Gross Margin % Calculation

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

IHS Markit's Gross Margin for the fiscal year that ended in Nov. 2021 is calculated as

Gross Margin % (A: Nov. 2021 )	=	Gross Profit (A: Nov. 2021 )	/	Revenue (A: Nov. 2021 )
	=	2949.8	/	4658.1
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4658.1 - 1708.3)	/	4658.1
	=	63.33 %

IHS Markit's Gross Margin for the quarter that ended in Nov. 2021 is calculated as

Gross Margin % (Q: Nov. 2021 )	=	Gross Profit (Q: Nov. 2021 )	/	Revenue (Q: Nov. 2021 )
	=	734.7	/	1176.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1176.3 - 441.6)	/	1176.3
	=	62.46 %

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.

IHS Markit (NYSE:INFO) 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

IHS Markit had a gross margin of 62.46% for the quarter that ended in Nov. 2021 => 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.

IHS Markit Gross Margin % Related Terms

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IHS Markit (IHS Markit) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » IHS Markit Ltd (NYSE:INFO) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY

Website

https://www.ihsmarkit.com

IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.