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RWS Holdings (LSE:RWS) Gross Margin % : 46.83% (As of Sep. 2023)


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What is RWS Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. RWS Holdings's Gross Profit for the six months ended in Sep. 2023 was £172.1 Mil. RWS Holdings's Revenue for the six months ended in Sep. 2023 was £367.5 Mil. Therefore, RWS Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 46.83%.


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

LSE:RWS' s Gross Margin % Range Over the Past 10 Years
Min: 38.83   Med: 41.43   Max: 46.74
Current: 46.27


During the past 13 years, the highest Gross Margin % of RWS Holdings was 46.74%. The lowest was 38.83%. And the median was 41.43%.

LSE:RWS's Gross Margin % is ranked better than
65.79% of 988 companies
in the Business Services industry
Industry Median: 34.34 vs LSE:RWS: 46.27

RWS Holdings had a gross margin of 46.83% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for RWS Holdings was 4.30% per year.


RWS Holdings Gross Margin % Historical Data

The historical data trend for RWS 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.

* Premium members only.

RWS Holdings Gross Margin % Chart

RWS Holdings Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 40.06 39.24 45.10 46.74 46.27

RWS Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 45.29 45.90 47.51 45.70 46.83

Competitive Comparison of RWS Holdings's Gross Margin %

For the Specialty Business Services subindustry, RWS 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.


RWS Holdings's Gross Margin % Distribution in the Business Services Industry

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

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



RWS Holdings Gross Margin % Calculation

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

RWS Holdings's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=339.5 / 733.8
=(Revenue - Cost of Goods Sold) / Revenue
=(733.8 - 394.3) / 733.8
=46.27 %

RWS Holdings's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=172.1 / 367.5
=(Revenue - Cost of Goods Sold) / Revenue
=(367.5 - 195.4) / 367.5
=46.83 %

* 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.


RWS Holdings  (LSE:RWS) 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

RWS Holdings had a gross margin of 46.83% for the quarter that ended in Sep. 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.


RWS Holdings Gross Margin % Related Terms

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


RWS Holdings (LSE:RWS) Business Description

Traded in Other Exchanges
Address
Europa House, Chiltern Park, Chiltern Hill, Chalfont Saint Peter, Buckinghamshire, GBR, SL9 9FG
RWS Holdings PLC is a United Kingdom-based company that provides patent translation, intellectual property, and language support services. The company operates in four reportable segments; Language Services, Regulated Industries, IP Services, and Language, and Content Technology. The majority of revenue is derived from the Language services segment. Geographically, it derives a majority of its revenue from the United States of America, while it also operates in Continental Europe, United States of America and Rest of the world.

RWS Holdings (LSE:RWS) Headlines

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