Gross Margin % is calculated as gross profit divided by its revenue. CBIZ's Gross Profit for the
three
months ended in Dec. 2023 was $-13 Mil. CBIZ's Revenue for the
three
months ended in Dec. 2023 was $328 Mil. Therefore, CBIZ's Gross Margin % for the quarter that ended in Dec. 2023 was -4.06%.
The historical rank and industry rank for CBIZ's Gross Margin % or its related term are showing as below:
CBZ'
s Gross Margin % Range Over the Past 10 Years
Min: 11.66 Med: 13.6 Max: 15.82
Current: 14.03
During the past 13 years, the highestGross Margin % of CBIZ was 15.82%. The lowest was 11.66%. And the median was 13.60%.
CBZ's Gross Margin % is ranked worse than 87.4% of 992
companies
in the Business Services industry
Industry Median: 34.725
vs CBZ: 14.03
CBIZ had a gross margin of -4.06% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CBIZ was 1.30% per year.
CBIZ Gross Margin % Historical Data
The historical data trend for CBIZ'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.
For the Specialty Business Services subindustry, CBIZ'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.
CBIZ's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, CBIZ's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CBIZ'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.
CBIZ (NYSE:CBZ) 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
CBIZ had a gross margin of -4.06% 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.
CBIZ Gross Margin % Related Terms
Thank you for viewing the detailed overview of CBIZ's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
CBIZ Inc through its subsidiaries provides professional business services. Its business units have been aggregated into three practice groups: Financial Services, Benefits and Insurance Services, and National Practices. The company provides its services to various industries such as Agribusiness, Agribusiness, SAAS, Construction, Health Care, Oil and Gas, Real Estate, Retail, Financial Institutions, and Government among others. It derives the majority of its revenues from the Financial Services segment and geographically from the United States.
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