Funding Circle Holdings (LSE:FCH) Gross Margin % : 100.47% (As of Dec. 2023)

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What is Funding Circle Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Funding Circle Holdings's Gross Profit for the six months ended in Dec. 2023 was £86.0 Mil. Funding Circle Holdings's Revenue for the six months ended in Dec. 2023 was £85.6 Mil. Therefore, Funding Circle Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 100.47%.

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

LSE:FCH' s Gross Margin % Range Over the Past 10 Years
Min: 18.27 Med: 50.25 Max: 99.63
Current: 99.63

During the past 9 years, the highest Gross Margin % of Funding Circle Holdings was 99.63%. The lowest was 18.27%. And the median was 50.25%.

LSE:FCH's Gross Margin % is ranked better than
97.78% of 360 companies
in the Credit Services industry
Industry Median: 53.125 vs LSE:FCH: 99.63

Funding Circle Holdings had a gross margin of 100.47% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Funding Circle Holdings was 13.00% per year.

Funding Circle Holdings Gross Margin % Historical Data

The historical data trend for Funding Circle Holdings'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.

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Funding Circle Holdings Gross Margin % Chart

Funding Circle Holdings Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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95.73

42.38

94.39

96.98

99.63

Funding Circle Holdings Semi-Annual Data
	Dec15	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial										94.63	96.05	97.99	98.70	100.47

Competitive Comparison of Funding Circle Holdings's Gross Margin %

For the Credit Services subindustry, Funding Circle Holdings'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.

Funding Circle Holdings's Gross Margin % Distribution in the Credit Services Industry

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

* The bar in red indicates where Funding Circle Holdings's Gross Margin % falls into.

Funding Circle Holdings Gross Margin % Calculation

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

Funding Circle Holdings'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 )
	=	162.2	/	162.8
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(162.8 - 0.60000000000002)	/	162.8
	=	99.63 %

Funding Circle Holdings'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 )
	=	86	/	85.6
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(85.6 - -0.40000000000001)	/	85.6
	=	100.47 %

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.

Funding Circle Holdings (LSE:FCH) 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

Funding Circle Holdings had a gross margin of 100.47% 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.

Funding Circle Holdings Gross Margin % Related Terms

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Funding Circle Holdings (LSE:FCH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Funding Circle Holdings PLC (LSE:FCH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

FDCHF:USA FCHl:UK

Address

71 Queen Victoria Street, London, GBR, EC4V 4AY

Website

https://www.corporate.fundingcircle.com

Funding Circle Holdings PLC provides an online lending platform through which borrower loans are originated and allocated to investors and comprising the different online lending platforms across the company's geographies. The company's geographical segments include the United Kingdom, the United States, and developing markets. It derives the majority of its revenue from the United Kingdom region.