ContextLogic Inc gross margin has been in long-term decline. The average rate of decline per year is -25.1%.
The historical rank and industry rank for ContextLogic's Gross Margin % or its related term are showing as below:
LOGC'
s Gross Margin % Range Over the Past 10 Years
Min: 19.82 Med: 62.73 Max: 83.91
Current: 19.82
During the past 7 years, the highestGross Margin % of ContextLogic was 83.91%. The lowest was 19.82%. And the median was 62.73%.
LOGC's Gross Margin % is ranked worse than 79.82% of 1095
companies
in the Retail - Cyclical industry
Industry Median: 36.51
vs LOGC: 19.82
ContextLogic had a gross margin of 16.67% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ContextLogic was -25.10% per year.
ContextLogic Gross Margin % Historical Data
The historical data trend for ContextLogic'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.
Competitive Comparison of ContextLogic's Gross Margin %
For the Internet Retail subindustry, ContextLogic'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.
ContextLogic's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, ContextLogic's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ContextLogic's Gross Margin % falls into.
* 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.
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
ContextLogic had a gross margin of 16.67% for the quarter that ended in Mar. 2024 => No sustainable 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.
ContextLogic Gross Margin % Related Terms
Thank you for viewing the detailed overview of ContextLogic's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ContextLogic Inc is an online shopping store. The store provides personalized products, clothing products, accessories, gaming products and equipment, cosmetics, plastic products, mobile covers, and other products. Geographically, it derives a majority of revenue from Europe and also has a presence in North America; South America, and other countries.
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