Graham Holdings Co gross margin has been in long-term decline. The average rate of decline per year is -4.9%.
The historical rank and industry rank for Graham Holdings Co's Gross Margin % or its related term are showing as below:
GHC'
s Gross Margin % Range Over the Past 10 Years
Min: 29.72 Med: 33.59 Max: 41.15
Current: 29.72
During the past 13 years, the highestGross Margin % of Graham Holdings Co was 41.15%. The lowest was 29.72%. And the median was 33.59%.
GHC's Gross Margin % is ranked worse than 77.42% of 248
companies
in the Education industry
Industry Median: 48.255
vs GHC: 29.72
Graham Holdings Co had a gross margin of 29.18% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Graham Holdings Co was -4.90% per year.
Graham Holdings Co Gross Margin % Historical Data
The historical data trend for Graham Holdings Co'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 Graham Holdings Co's Gross Margin %
For the Education & Training Services subindustry, Graham Holdings Co'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.
Graham Holdings Co's Gross Margin % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Graham Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Graham Holdings Co'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.
Graham Holdings Co (NYSE:GHC) 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
Graham Holdings Co had a gross margin of 29.18% 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.
Graham Holdings Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Graham Holdings Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Graham Holdings Co (Graham Holdings Co) Business Description
Graham Holdings Co. is a diversified education and media company made up of subsidiaries. Firm operations include educational services; television broadcasting; online, print, and local news; home health and hospice care; and manufacturing. The Company segments into the following seven reportable segments: Kaplan International, Higher Education, Supplemental Education, Television Broadcasting, Manufacturing, Healthcare, and Automotive. The majority of revenue comes from the Kaplan International segment, which includes higher education, test preparation, language instruction, and professional training. A large portion of company revenue also comes from the television broadcasting segment through advertising.
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