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Berkeley Group Holdings (The) (LSE:BKG) Gross Margin % : 26.14% (As of Oct. 2023)


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What is Berkeley Group Holdings (The) Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Berkeley Group Holdings (The)'s Gross Profit for the six months ended in Oct. 2023 was £312 Mil. Berkeley Group Holdings (The)'s Revenue for the six months ended in Oct. 2023 was £1,192 Mil. Therefore, Berkeley Group Holdings (The)'s Gross Margin % for the quarter that ended in Oct. 2023 was 26.14%.

Warning Sign:

Berkeley Group Holdings (The) PLC gross margin has been in long-term decline. The average rate of decline per year is -4.5%.


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

LSE:BKG' s Gross Margin % Range Over the Past 10 Years
Min: 26.94   Med: 32.3   Max: 34.62
Current: 26.94


During the past 13 years, the highest Gross Margin % of Berkeley Group Holdings (The) was 34.62%. The lowest was 26.94%. And the median was 32.30%.

LSE:BKG's Gross Margin % is ranked better than
80.2% of 101 companies
in the Homebuilding & Construction industry
Industry Median: 21.69 vs LSE:BKG: 26.94

Berkeley Group Holdings (The) had a gross margin of 26.14% for the quarter that ended in Oct. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Berkeley Group Holdings (The) was -4.50% per year.


Berkeley Group Holdings (The) Gross Margin % Historical Data

The historical data trend for Berkeley Group Holdings (The)'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.

Berkeley Group Holdings (The) Gross Margin % Chart

Berkeley Group Holdings (The) Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.32 33.19 28.85 28.31 27.32

Berkeley Group Holdings (The) Semi-Annual Data
Apr14 Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23
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 28.39 28.24 26.97 27.64 26.14

Competitive Comparison of Berkeley Group Holdings (The)'s Gross Margin %

For the Residential Construction subindustry, Berkeley Group Holdings (The)'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.


Berkeley Group Holdings (The)'s Gross Margin % Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Berkeley Group Holdings (The)'s Gross Margin % distribution charts can be found below:

* The bar in red indicates where Berkeley Group Holdings (The)'s Gross Margin % falls into.



Berkeley Group Holdings (The) Gross Margin % Calculation

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

Berkeley Group Holdings (The)'s Gross Margin for the fiscal year that ended in Apr. 2023 is calculated as

Gross Margin % (A: Apr. 2023 )=Gross Profit (A: Apr. 2023 ) / Revenue (A: Apr. 2023 )
=696.8 / 2550.2
=(Revenue - Cost of Goods Sold) / Revenue
=(2550.2 - 1853.4) / 2550.2
=27.32 %

Berkeley Group Holdings (The)'s Gross Margin for the quarter that ended in Oct. 2023 is calculated as


Gross Margin % (Q: Oct. 2023 )=Gross Profit (Q: Oct. 2023 ) / Revenue (Q: Oct. 2023 )
=311.6 / 1191.9
=(Revenue - Cost of Goods Sold) / Revenue
=(1191.9 - 880.3) / 1191.9
=26.14 %

* 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.


Berkeley Group Holdings (The)  (LSE:BKG) 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

Berkeley Group Holdings (The) had a gross margin of 26.14% for the quarter that ended in Oct. 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.


Berkeley Group Holdings (The) Gross Margin % Related Terms

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Berkeley Group Holdings (The) (LSE:BKG) Business Description

Traded in Other Exchanges
Address
19 Portsmouth Road, Berkeley House, Surrey, Cobham, GBR, KT11 1JG
Berkeley Group Holdings is a U.K. homebuilder specializing in large-scale residential-led brownfield redevelopment projects with a particular focus on the London, Birmingham, and south of England housing markets. The group is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain.

Berkeley Group Holdings (The) (LSE:BKG) Headlines

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