Gross Margin % is calculated as gross profit divided by its revenue. SPAR Group's Gross Profit for the
three
months ended in Dec. 2023 was $14.9 Mil. SPAR Group's Revenue for the
three
months ended in Dec. 2023 was $65.1 Mil. Therefore, SPAR Group's Gross Margin % for the quarter that ended in Dec. 2023 was 22.85%.
The historical rank and industry rank for SPAR Group's Gross Margin % or its related term are showing as below:
SGRP'
s Gross Margin % Range Over the Past 10 Years
Min: 18.58 Med: 19.94 Max: 24.87
Current: 21.12
During the past 13 years, the highestGross Margin % of SPAR Group was 24.87%. The lowest was 18.58%. And the median was 19.94%.
SGRP's Gross Margin % is ranked worse than 74.52% of 989
companies
in the Business Services industry
Industry Median: 34.65
vs SGRP: 21.12
SPAR Group had a gross margin of 22.85% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for SPAR Group was 1.10% per year.
SPAR Group Gross Margin % Historical Data
The historical data trend for SPAR 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.
Competitive Comparison of SPAR Group's Gross Margin %
For the Specialty Business Services subindustry, SPAR 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.
SPAR Group's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, SPAR Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SPAR Group'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.
SPAR Group (NAS:SGRP) 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
SPAR Group had a gross margin of 22.85% for the quarter that ended in Dec. 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.
SPAR Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of SPAR Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
SPAR Group Inc is a supplier of merchandising and other marketing services. It also provides in-store event staffing, product sampling, audit services, furniture and other product assembly services, technology services and marketing research services. The company divides its operations into two reportable segments: Domestic division is comprised of all operations within the United States; and The International division is a consolidation of all other operations and joint ventures. Its customers are from retail and manufacturing segments. Its geographic presence is in Brazil, South Africa, Mexico, China, Japan, India, Canada, Australia, Turkey, and United States from where it generates maximum revenue.
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