Franchise Group (Franchise Group) Gross Margin % : 39.09% (As of Jun. 2023)

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What is Franchise Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Franchise Group's Gross Profit for the three months ended in Jun. 2023 was $406 Mil. Franchise Group's Revenue for the three months ended in Jun. 2023 was $1,039 Mil. Therefore, Franchise Group's Gross Margin % for the quarter that ended in Jun. 2023 was 39.09%.

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

FRG' s Gross Margin % Range Over the Past 10 Years
Min: 39.81 Med: 46.14 Max: 55.08
Current: 39.81

During the past 13 years, the highest Gross Margin % of Franchise Group was 55.08%. The lowest was 39.81%. And the median was 46.14%.

FRG's Gross Margin % is not ranked
in the Retail - Cyclical industry.
Industry Median: 36.63 vs FRG: 39.81

Franchise Group had a gross margin of 39.09% for the quarter that ended in Jun. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Franchise Group was 0.00% per year.

Franchise Group Gross Margin % Historical Data

The historical data trend for Franchise 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.

Franchise Group Gross Margin % Chart

Franchise Group Annual Data

Trend

Apr13

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Dec20

Dec21

Dec22

Gross Margin %

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42.84

40.99

42.40

Franchise Group Quarterly Data
	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Gross Margin %	Get a 7-Day Free Trial															44.09	41.37	39.38	39.44	39.09

Competitive Comparison of Franchise Group's Gross Margin %

For the Specialty Retail subindustry, Franchise 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.

Franchise Group's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Franchise Group's Gross Margin % distribution charts can be found below:

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

Franchise Group Gross Margin % Calculation

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

Franchise Group's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	1864.5	/	4397.832
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4397.832 - 2533.344)	/	4397.832
	=	42.40 %

Franchise Group's Gross Margin for the quarter that ended in Jun. 2023 is calculated as

Gross Margin % (Q: Jun. 2023 )	=	Gross Profit (Q: Jun. 2023 )	/	Revenue (Q: Jun. 2023 )
	=	406.1	/	1038.686
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1038.686 - 632.623)	/	1038.686
	=	39.09 %

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.

Franchise Group (NAS:FRG) 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

Franchise Group had a gross margin of 39.09% for the quarter that ended in Jun. 2023 => Competition eroding margins

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.

Franchise Group Gross Margin % Related Terms

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

Franchise Group (Franchise Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Franchise Group Inc (NAS:FRG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

109 Innovation Court, Suite J, Delaware, OH, USA, 43015

Website

https://www.franchisegrp.com

Franchise Group Inc is a personal services company that provides retail federal and state income tax preparation services and related tax settlement products. The vast majority of these offices operate in the United States under the Liberty Tax Service and SiempreTax+ brand names. Liberty Tax also provides online do-it-yourself tax programs within the U.S. The sale of financial products and tax preparation service fees also contribute to sizable percentages of the company's total income. Liberty Tax also operates a smaller portfolio of wholly-owned company offices. The company's reportable segments are Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy's and Sylvan.

Executives

Daniel Meitner Ondeck	10 percent owner	13301 BEALL CREEK CT., POTOMAC MD 20854
Richard W Riley	10 percent owner	B RILEY AND CO, 11100 SANTA MONICA BLVD STE 800, LOS ANGELES CA 90025
Bryant R Riley	director, 10 percent owner	C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Kelleher Thomas J /adv	10 percent owner	C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Randall E Paulson	10 percent owner
Nanhi Singh	director	109 INNOVATION COURT, SUITE J, DELAWARE OH 43015
Gary S Rich	director	C/O THE READER'S DIGEST ASSOCIATION, READER'S DIGEST ROAD, PLEASANTVILLE NY 10570
Brian Randall Kahn	director, 10 percent owner, officer: Chief Executive Officer	5506 WORSHAM COURT, WINDERMERE FL 34786
Patrick A Cozza	director	C/O HSBC INSURANCE, 545 WASHINGTON BLVD, JERSEY CITY NJ 07310
Lee A. Wright	officer: Chief Commercial Officer	C/O DIAMOND CASTLE HOLDINGS, LLC, 280 PARK AVENUE, 25TH FLOOR, EAST TOWER, NEW YORK NY 10017
Andrew M Laurence	director	C/O API TECHNOLOGIES CORP., ONE NORTH WACKER DRIVE SUITE 4400, CHICAGO IL 60606
Cynthia S Dubin	director	1200 E. MARKET STREET, SUITE 650, AKRON OH 44305
Lisa M Fairfax	director	2387 LIBERTY WAY, VIRGINIA BEACH VA 23456
Vintage Capital Management Llc	director, 10 percent owner, officer: Chief Executive Officer	4705 S APOPKA VINELAND ROAD SUITE 210, ORLANDO FL 32819
B. Riley Financial, Inc.	10 percent owner	11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025