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Spotless Group Holdings (Spotless Group Holdings) Gross Margin % : 83.47% (As of Jun. 2019)


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What is Spotless Group Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Spotless Group Holdings's Gross Profit for the six months ended in Jun. 2019 was $908.82 Mil. Spotless Group Holdings's Revenue for the six months ended in Jun. 2019 was $1,088.75 Mil. Therefore, Spotless Group Holdings's Gross Margin % for the quarter that ended in Jun. 2019 was 83.47%.


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

SPTGY' s Gross Margin % Range Over the Past 10 Years
Min: 80.18   Med: 83.99   Max: 85.02
Current: 84.01


During the past 7 years, the highest Gross Margin % of Spotless Group Holdings was 85.02%. The lowest was 80.18%. And the median was 83.99%.

SPTGY's Gross Margin % is not ranked
in the Business Services industry.
Industry Median: 34.38 vs SPTGY: 84.01

Spotless Group Holdings had a gross margin of 83.47% for the quarter that ended in Jun. 2019 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Spotless Group Holdings was 0.20% per year.


Spotless Group Holdings Gross Margin % Historical Data

The historical data trend for Spotless Group 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.

Spotless Group Holdings Gross Margin % Chart

Spotless Group Holdings Annual Data
Trend Dec13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19
Gross Margin %
Get a 7-Day Free Trial 80.18 83.88 84.01 83.96 84.01

Spotless Group Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 84.50 83.62 84.29 84.59 83.47

Competitive Comparison of Spotless Group Holdings's Gross Margin %

For the Specialty Business Services subindustry, Spotless Group 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.


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

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

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



Spotless Group Holdings Gross Margin % Calculation

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

Spotless Group Holdings's Gross Margin for the fiscal year that ended in Jun. 2019 is calculated as

Gross Margin % (A: Jun. 2019 )=Gross Profit (A: Jun. 2019 ) / Revenue (A: Jun. 2019 )
=1764.9 / 2100.764
=(Revenue - Cost of Goods Sold) / Revenue
=(2100.764 - 335.903) / 2100.764
=84.01 %

Spotless Group Holdings's Gross Margin for the quarter that ended in Jun. 2019 is calculated as


Gross Margin % (Q: Jun. 2019 )=Gross Profit (Q: Jun. 2019 ) / Revenue (Q: Jun. 2019 )
=908.8 / 1088.75
=(Revenue - Cost of Goods Sold) / Revenue
=(1088.75 - 179.931) / 1088.75
=83.47 %

* 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.


Spotless Group Holdings  (OTCPK:SPTGY) 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

Spotless Group Holdings had a gross margin of 83.47% for the quarter that ended in Jun. 2019 => 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.


Spotless Group Holdings Gross Margin % Related Terms

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Spotless Group Holdings (Spotless Group Holdings) Business Description

Traded in Other Exchanges
N/A
Address
549 St Kilda Road, Melbourne, VIC, AUS, 3004
Spotless Group Holdings Ltd is a provider of outsourced facility services and laundry and linen facilities in Australia and New Zealand. The largest Australian and New Zealand competitors to Spotless Group are Compass Group, Serco, ISS, and Transfield Services. They also provide technical and engineering services, maintenance and asset management services and refrigeration solutions to various industries.

Spotless Group Holdings (Spotless Group Holdings) Headlines

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