Speedy Hire (LSE:SDY) Gross Margin % : 54.05% (As of Sep. 2023)

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What is Speedy Hire Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Speedy Hire's Gross Profit for the six months ended in Sep. 2023 was £112.7 Mil. Speedy Hire's Revenue for the six months ended in Sep. 2023 was £208.5 Mil. Therefore, Speedy Hire's Gross Margin % for the quarter that ended in Sep. 2023 was 54.05%.

Warning Sign:

Speedy Hire PLC gross margin has been in long-term decline. The average rate of decline per year is -1.1%.

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

LSE:SDY' s Gross Margin % Range Over the Past 10 Years
Min: 49.46 Med: 55.26 Max: 61.37
Current: 49.46

During the past 13 years, the highest Gross Margin % of Speedy Hire was 61.37%. The lowest was 49.46%. And the median was 55.26%.

LSE:SDY's Gross Margin % is ranked better than
69.94% of 988 companies
in the Business Services industry
Industry Median: 34.315 vs LSE:SDY: 49.46

Speedy Hire had a gross margin of 54.05% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Speedy Hire was -1.10% per year.

Speedy Hire Gross Margin % Historical Data

The historical data trend for Speedy Hire'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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Speedy Hire Gross Margin % Chart

Speedy Hire Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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54.32

57.69

55.64

57.16

49.70

Speedy Hire Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial															57.26	57.06	54.42	45.22	54.05

Competitive Comparison of Speedy Hire's Gross Margin %

For the Rental & Leasing Services subindustry, Speedy Hire'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.

Speedy Hire's Gross Margin % Distribution in the Business Services Industry

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

* The bar in red indicates where Speedy Hire's Gross Margin % falls into.

Speedy Hire Gross Margin % Calculation

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

Speedy Hire's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	219	/	440.6
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(440.6 - 221.6)	/	440.6
	=	49.70 %

Speedy Hire'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 )
	=	112.7	/	208.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(208.5 - 95.8)	/	208.5
	=	54.05 %

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.

Speedy Hire (LSE:SDY) 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

Speedy Hire had a gross margin of 54.05% 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.

Speedy Hire Gross Margin % Related Terms

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Speedy Hire (LSE:SDY) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Speedy Hire PLC (LSE:SDY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SDYl:UK SDY.GB:UK 5HN:Germany

Address

Chase House, 16 The Parks, Newton-le-Willows, Merseyside, GBR, WA12 0JQ

Website

https://www.speedyservices.com

Speedy Hire PLC is a UK-based company engaged in the provision of equipment for hire and sale and associated services to construction, infrastructure, industry, and related industries. It delivers asset management with tailored services and a continued commitment to relationship management. It generates revenue from Hire and related activities followed by services provided. The company's geographical segments are the United Kingdom and Ireland, of which the majority of its revenue comes from the United Kingdom.