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Trainline (LSE:TRN) Gross Margin % : 76.62% (As of Aug. 2023)


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What is Trainline Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Trainline's Gross Profit for the six months ended in Aug. 2023 was £150.9 Mil. Trainline's Revenue for the six months ended in Aug. 2023 was £196.9 Mil. Therefore, Trainline's Gross Margin % for the quarter that ended in Aug. 2023 was 76.62%.


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

LSE:TRN' s Gross Margin % Range Over the Past 10 Years
Min: 72.56   Med: 74.2   Max: 77.14
Current: 76.48


During the past 7 years, the highest Gross Margin % of Trainline was 77.14%. The lowest was 72.56%. And the median was 74.20%.

LSE:TRN's Gross Margin % is ranked better than
84.88% of 767 companies
in the Travel & Leisure industry
Industry Median: 43.25 vs LSE:TRN: 76.48

Trainline had a gross margin of 76.62% for the quarter that ended in Aug. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Trainline was 0.90% per year.


Trainline Gross Margin % Historical Data

The historical data trend for Trainline'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.

Trainline Gross Margin % Chart

Trainline Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Gross Margin %
Get a 7-Day Free Trial 74.20 77.14 72.56 76.33 77.10

Trainline Semi-Annual Data
Feb17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 73.81 78.10 77.88 76.31 76.62

Competitive Comparison of Trainline's Gross Margin %

For the Travel Services subindustry, Trainline'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.


Trainline's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Trainline's Gross Margin % distribution charts can be found below:

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



Trainline Gross Margin % Calculation

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

Trainline's Gross Margin for the fiscal year that ended in Feb. 2023 is calculated as

Gross Margin % (A: Feb. 2023 )=Gross Profit (A: Feb. 2023 ) / Revenue (A: Feb. 2023 )
=252.2 / 327.147
=(Revenue - Cost of Goods Sold) / Revenue
=(327.147 - 74.923) / 327.147
=77.10 %

Trainline's Gross Margin for the quarter that ended in Aug. 2023 is calculated as


Gross Margin % (Q: Aug. 2023 )=Gross Profit (Q: Aug. 2023 ) / Revenue (Q: Aug. 2023 )
=150.9 / 196.932
=(Revenue - Cost of Goods Sold) / Revenue
=(196.932 - 46.037) / 196.932
=76.62 %

* 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.


Trainline  (LSE:TRN) 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

Trainline had a gross margin of 76.62% for the quarter that ended in Aug. 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.


Trainline Gross Margin % Related Terms

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Trainline (LSE:TRN) Business Description

Traded in Other Exchanges
Address
120 Holborn, 3rd Floor, London, GBR, EC1N 2TD
Trainline PLC is an independent rail and coach travel platform selling rail and coach tickets to millions of travellers worldwide, enabling them to seamlessly search, book and manage their journeys all in one place via its website and mobile app. The company's segment includes UK Consumer; International Consumer and Trainline Solutions. It generates maximum revenue from the UK Consumer segment.