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Guild Esports (LSE:GILD) Gross Margin % : 79.54% (As of Sep. 2023)


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What is Guild Esports Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Guild Esports's Gross Profit for the six months ended in Sep. 2023 was £1.45 Mil. Guild Esports's Revenue for the six months ended in Sep. 2023 was £1.82 Mil. Therefore, Guild Esports's Gross Margin % for the quarter that ended in Sep. 2023 was 79.54%.


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

LSE:GILD' s Gross Margin % Range Over the Past 10 Years
Min: 57.78   Med: 62.14   Max: 72.16
Current: 72.16


During the past 4 years, the highest Gross Margin % of Guild Esports was 72.16%. The lowest was 57.78%. And the median was 62.14%.

LSE:GILD's Gross Margin % is ranked better than
84.96% of 964 companies
in the Media - Diversified industry
Industry Median: 38.52 vs LSE:GILD: 72.16

Guild Esports had a gross margin of 79.54% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Guild Esports was 0.00% per year.


Guild Esports Gross Margin % Historical Data

The historical data trend for Guild Esports'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.

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Guild Esports Gross Margin % Chart

Guild Esports Annual Data
Trend Sep20 Sep21 Sep22 Sep23
Gross Margin %
- 57.78 62.14 72.16

Guild Esports Semi-Annual Data
Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Gross Margin % Get a 7-Day Free Trial 64.71 65.75 60.97 68.53 79.54

Competitive Comparison of Guild Esports's Gross Margin %

For the Entertainment subindustry, Guild Esports'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.


Guild Esports's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Guild Esports's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Guild Esports's Gross Margin % falls into.



Guild Esports Gross Margin % Calculation

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

Guild Esports's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=4 / 5.525
=(Revenue - Cost of Goods Sold) / Revenue
=(5.525 - 1.538) / 5.525
=72.16 %

Guild Esports's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=1.5 / 1.823
=(Revenue - Cost of Goods Sold) / Revenue
=(1.823 - 0.373) / 1.823
=79.54 %

* 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.


Guild Esports  (LSE:GILD) 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

Guild Esports had a gross margin of 79.54% for the quarter that ended in Sep. 2023 => Durable 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.


Guild Esports Gross Margin % Related Terms

Thank you for viewing the detailed overview of Guild Esports's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Guild Esports (LSE:GILD) Business Description

Traded in Other Exchanges
Address
2 Chance Street, London, GBR, E1 6JT
Guild Esports PLC operates an esports business. The company focuses on creating a franchise by establishing its esports teams to compete in main esports tournaments and a player training and scouting infrastructure modelled on the talent academies pioneered by Premier League football teams. Revenue is generated through multi-year sponsorship deals with corporate and consumer brands.