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American Public Education (American Public Education) Gross Margin %

: 53.70% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. American Public Education's Gross Profit for the three months ended in Dec. 2023 was $82.1 Mil. American Public Education's Revenue for the three months ended in Dec. 2023 was $152.8 Mil. Therefore, American Public Education's Gross Margin % for the quarter that ended in Dec. 2023 was 53.70%.

Warning Sign:

American Public Education Inc gross margin has been in long-term decline. The average rate of decline per year is -3.9%.


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

APEI' s Gross Margin % Range Over the Past 10 Years
Min: 51.23   Med: 61.23   Max: 64.64
Current: 51.23


During the past 13 years, the highest Gross Margin % of American Public Education was 64.64%. The lowest was 51.23%. And the median was 61.23%.

APEI's Gross Margin % is ranked better than
53.63% of 248 companies
in the Education industry
Industry Median: 48.415 vs APEI: 51.23

American Public Education had a gross margin of 53.70% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for American Public Education was -3.90% per year.


American Public Education Gross Margin % Historical Data

The historical data trend for American Public Education'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.

American Public Education Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 60.91 62.04 58.78 52.42 51.23

American Public Education Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 52.20 50.64 49.06 51.45 53.70

Competitive Comparison

For the Education & Training Services subindustry, American Public Education'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.


American Public Education Gross Margin % Distribution

For the Education industry and Consumer Defensive sector, American Public Education's Gross Margin % distribution charts can be found below:

* The bar in red indicates where American Public Education's Gross Margin % falls into.



American Public Education Gross Margin % Calculation

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

American Public Education's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=307.7 / 600.545
=(Revenue - Cost of Goods Sold) / Revenue
=(600.545 - 292.862) / 600.545
=51.23 %

American Public Education's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=82.1 / 152.804
=(Revenue - Cost of Goods Sold) / Revenue
=(152.804 - 70.747) / 152.804
=53.70 %

* 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.


American Public Education  (NAS:APEI) 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

American Public Education had a gross margin of 53.70% for the quarter that ended in Dec. 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.


American Public Education Gross Margin % Related Terms

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


American Public Education (American Public Education) Business Description

Traded in Other Exchanges
N/A
Address
111 West Congress Street, Charles Town, WV, USA, 25414
American Public Education Inc provides online and on-campus postsecondary education including various undergraduate and graduate degree programs. The fields of study include business administration, health science, technology, criminal justice, education, liberal arts, national security, military studies, intelligence, and homeland security. There are three reporting segments: the American Public Education segment which is the key revenue generator; the Rasmussen University Segment and the Hondros College of Nursing segment. The revenue is generated from net course registrations and enrollment, tuition rate, net tuition, and other fees.
Executives
Barbara Kurshan director C/O AMERICAN PUBLIC EDUCATION, 111 W. CONGRESS STREET, CHARLES TOWN WV 25414
Craig S Macgibbon officer: EVP, Chief Information Officer C/O UIL HOLDINGS CORPORATION, 157 CHURCH STREET, NEW HAVEN CT 06506
Thomas Beckett officer: SVP, General Counsel 111 W. CONGRESS STREET, CHARLES TOWN WV 25414
Paula R Singer officer: Acting President, Rasmussen C/O AMERICAN PUBLIC EDUCATION, INC., 111 WEST CONGRESS STREET, CHARLES TOWN WV 25414
325 Master Fund Lp other: See Footnotes 757 THIRD AVENUE, 20TH FLOOR, NEW YORK NY 10017
Daniel M. Friedberg other: See Footnotes C/O SAGARD CAPITAL, 325 GREENWICH AVENUE, GREENWICH CT 06830
325 Capital Llc other: See Footnotes 757 THIRD AVENUE, 20TH FLOOR, NEW YORK NY 10017
Michael David Braner director, other: See Footnotes 200 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10016
Anil K Shrivastava other: See Footnotes 200 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10016
325 Capital Gp, Llc other: See Footnotes 757 THIRD AVENUE, 20TH FLOOR, NEW YORK NY 10017
Robinson William G Jr director 3150 SABRE DRIVE, SOUTHLAKE TX 76092
Granetta B. Blevins director C/O AMERICAN PUBLIC EDUCATION, INC., 111 WEST CONGRESS STREET, CHARLES TOWN WV 25414
Harry T Wilkins officer: EVP, Strategy, Growth & Innov. 111 W. CONGRESS STREET, CHARLES TOWN WV 25414
Anna M. Fabrega director C/O AMERICAN PUBLIC EDUCATION, INC., 111 WEST CONGRESS STREET, CHARLES TOWN WV 25414
Eric C. Andersen director C/O AMERICAN PUBLIC EDUCATION, INC., 111 W. CONGRESS STREET, CHARLES TOWN WV 25414