Equals Group (LSE:EQLS) Gross Margin % : 56.67% (As of Dec. 2023)

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What is Equals Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Equals Group's Gross Profit for the six months ended in Dec. 2023 was £28.72 Mil. Equals Group's Revenue for the six months ended in Dec. 2023 was £50.68 Mil. Therefore, Equals Group's Gross Margin % for the quarter that ended in Dec. 2023 was 56.67%.

Warning Sign:

Equals Group PLC 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 Equals Group's Gross Margin % or its related term are showing as below:

LSE:EQLS' s Gross Margin % Range Over the Past 10 Years
Min: 48.3 Med: 66.85 Max: 77.19
Current: 54.67

During the past 13 years, the highest Gross Margin % of Equals Group was 77.19%. The lowest was 48.30%. And the median was 66.85%.

LSE:EQLS's Gross Margin % is ranked better than
51% of 351 companies
in the Credit Services industry
Industry Median: 53.31 vs LSE:EQLS: 54.67

Equals Group had a gross margin of 56.67% for the quarter that ended in Dec. 2023 => Durable competitive advantage

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

Equals Group Gross Margin % Historical Data

The historical data trend for Equals Group'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.

Equals Group Gross Margin % Chart

Equals Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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66.46

63.15

54.48

48.30

54.67

Equals Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															50.41	47.38	49.05	52.42	56.67

Competitive Comparison of Equals Group's Gross Margin %

For the Credit Services subindustry, Equals Group'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.

Equals Group's Gross Margin % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Equals Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Equals Group's Gross Margin % falls into.

Equals Group Gross Margin % Calculation

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

Equals Group'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 )
	=	52.3	/	95.711
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(95.711 - 43.385)	/	95.711
	=	54.67 %

Equals Group'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 )
	=	28.7	/	50.683
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(50.683 - 21.96)	/	50.683
	=	56.67 %

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.

Equals Group (LSE:EQLS) 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

Equals Group had a gross margin of 56.67% for the quarter that ended in Dec. 2023 => 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.

Equals Group Gross Margin % Related Terms

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Equals Group (LSE:EQLS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Equals Group PLC (LSE:EQLS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

2FX:Germany

Address

68 Upper Thames Street, 3rd Floor, Thames House, Vintners’ Place, London, GBR, EC4V 3BJ

Website

https://www.equalsplc.com

Equals Group PLC is a part of the financial service sector in the United Kingdom. The company's core business is the provision of foreign exchange payment services for individuals and corporates. Its operating segment includes Currency Cards; International Payments; Travel Cash and Banking, Solutions, Central. The company revenue is primarily derived from UK based customers.