Adcorp Holdings (JSE:ADR) Gross Margin % : 9.72% (As of Aug. 2023)

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What is Adcorp Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Adcorp Holdings's Gross Profit for the six months ended in Aug. 2023 was R628 Mil. Adcorp Holdings's Revenue for the six months ended in Aug. 2023 was R6,458 Mil. Therefore, Adcorp Holdings's Gross Margin % for the quarter that ended in Aug. 2023 was 9.72%.

Warning Sign:

Adcorp Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.8%.

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

JSE:ADR' s Gross Margin % Range Over the Past 10 Years
Min: 9.74 Med: 14.14 Max: 16.49
Current: 10.15

During the past 13 years, the highest Gross Margin % of Adcorp Holdings was 16.49%. The lowest was 9.74%. And the median was 14.14%.

JSE:ADR's Gross Margin % is ranked worse than
91.7% of 988 companies
in the Business Services industry
Industry Median: 34.34 vs JSE:ADR: 10.15

Adcorp Holdings had a gross margin of 9.72% for the quarter that ended in Aug. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Adcorp Holdings was -6.80% per year.

Adcorp Holdings Gross Margin % Historical Data

The historical data trend for Adcorp Holdings'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.

Adcorp Holdings Gross Margin % Chart

Adcorp Holdings Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Gross Margin %

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13.74

11.37

9.74

10.68

10.64

Adcorp Holdings Semi-Annual Data
	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Gross Margin %	Get a 7-Day Free Trial															10.38	10.97	10.69	10.60	9.72

Competitive Comparison of Adcorp Holdings's Gross Margin %

For the Staffing & Employment Services subindustry, Adcorp Holdings'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.

Adcorp Holdings's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Adcorp Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Adcorp Holdings's Gross Margin % falls into.

Adcorp Holdings Gross Margin % Calculation

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

Adcorp Holdings's Gross Margin for the fiscal year that ended in Feb. 2023 is calculated as

Gross Margin % (A: Feb. 2023 )	=	Gross Profit (A: Feb. 2023 )	/	Revenue (A: Feb. 2023 )
	=	1282.4	/	12048.951
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12048.951 - 10766.543)	/	12048.951
	=	10.64 %

Adcorp Holdings's Gross Margin for the quarter that ended in Aug. 2023 is calculated as

Gross Margin % (Q: Aug. 2023 )	=	Gross Profit (Q: Aug. 2023 )	/	Revenue (Q: Aug. 2023 )
	=	627.7	/	6458.108
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6458.108 - 5830.389)	/	6458.108
	=	9.72 %

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.

Adcorp Holdings (JSE:ADR) 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

Adcorp Holdings had a gross margin of 9.72% for the quarter that ended in Aug. 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.

Adcorp Holdings Gross Margin % Related Terms

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Adcorp Holdings (JSE:ADR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Adcorp Holdings Ltd (JSE:ADR) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

102 Western Service Road, Adcorp Place, Gallo Manor Ext 6, Johannesburg, GT, ZAF, 2191

Website

https://www.adcorpgroup.com

Adcorp Holdings Ltd is engaged in providing workplace solutions. The company renders services in the fields of permanent recruitment and flexible staffing sectors, professional IT services, as well as the provision of business process outsourcing, training, and financial services. Its operating segments are Industrial Services, Professional Services, Training Services, and Australia. The geographical segments are South Africa and International.

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