Gross Margin % is calculated as gross profit divided by its revenue. Heritage Global's Gross Profit for the
three
months ended in Dec. 2023 was $1.89 Mil. Heritage Global's Revenue for the
three
months ended in Dec. 2023 was $15.28 Mil. Therefore, Heritage Global's Gross Margin % for the quarter that ended in Dec. 2023 was 12.39%.
Warning Sign:
Heritage Global Inc gross margin has been in long-term decline. The average rate of decline per year is -9.2%.
The historical rank and industry rank for Heritage Global's Gross Margin % or its related term are showing as below:
HGBL'
s Gross Margin % Range Over the Past 10 Years
Min: 26.54 Med: 38.72 Max: 64.16
Current: 36.32
During the past 13 years, the highestGross Margin % of Heritage Global was 64.16%. The lowest was 26.54%. And the median was 38.72%.
HGBL's Gross Margin % is ranked worse than 59.74% of 606
companies
in the Capital Markets industry
Industry Median: 50.265
vs HGBL: 36.32
Heritage Global had a gross margin of 12.39% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Heritage Global was -9.20% per year.
Heritage Global Gross Margin % Historical Data
The historical data trend for Heritage Global'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.
Heritage Global Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Gross Margin %
36.79
43.74
46.56
26.54
39.23
Heritage Global Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Gross Margin %
9.62
46.83
39.92
45.57
12.39
Competitive Comparison
For the Capital Markets subindustry, Heritage Global'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.
Heritage Global Gross Margin % Distribution
For the Capital Markets industry and Financial Services sector, Heritage Global's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Heritage Global'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.
Heritage Global (NAS:HGBL) 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
Heritage Global had a gross margin of 12.39% for the quarter that ended in Dec. 2023 => 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.
Heritage Global Gross Margin % Related Terms
Thank you for viewing the detailed overview of Heritage Global's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Heritage Global (Heritage Global) Business Description
Heritage Global Inc values and monetizes industrial and financial assets by providing acquisition, disposition, valuation, and lending services for surplus and distressed assets. It aids in facilitating the economy by diverting useful industrial assets from landfills and operating a supply chain by overseeing the post-sale account activity of financial assets. The group operates in four segments namely Auction and Liquidation; Refurbishment and Resale; Brokerage and Specialty Lending. It generates maximum revenue from the Auction and Liquidation segment. The Auction and Liquidation segment, through HGP, operates as a global full-service auction, appraisal, and asset advisory firm, including the acquisition of turnkey manufacturing facilities and used industrial machinery and equipment.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HGBL has been successfully added to your 