Gross Margin % is calculated as gross profit divided by its revenue. Barrett Business Services's Gross Profit for the
three
months ended in Dec. 2023 was $66 Mil. Barrett Business Services's Revenue for the
three
months ended in Dec. 2023 was $277 Mil. Therefore, Barrett Business Services's Gross Margin % for the quarter that ended in Dec. 2023 was 23.71%.
The historical rank and industry rank for Barrett Business Services's Gross Margin % or its related term are showing as below:
BBSI'
s Gross Margin % Range Over the Past 10 Years
Min: 5.25 Med: 20.31 Max: 22.68
Current: 22.68
During the past 13 years, the highestGross Margin % of Barrett Business Services was 22.68%. The lowest was 5.25%. And the median was 20.31%.
BBSI's Gross Margin % is ranked worse than 71.17% of 992
companies
in the Business Services industry
Industry Median: 34.725
vs BBSI: 22.68
Barrett Business Services had a gross margin of 23.71% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Barrett Business Services was 2.10% per year.
Barrett Business Services Gross Margin % Historical Data
The historical data trend for Barrett Business Services'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.
Competitive Comparison of Barrett Business Services's Gross Margin %
For the Staffing & Employment Services subindustry, Barrett Business Services'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.
Barrett Business Services's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Barrett Business Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Barrett Business Services's Gross Margin % falls into.
Barrett Business Services Gross Margin % Calculation
* 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.
Barrett Business Services (NAS:BBSI) 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
Barrett Business Services had a gross margin of 23.71% for the quarter that ended in Dec. 2023 => Competition eroding margins
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.
Barrett Business Services Gross Margin % Related Terms
Thank you for viewing the detailed overview of Barrett Business Services's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Barrett Business Services (Barrett Business Services) Business Description
Barrett Business Services Inc is a provider of payroll administrative services and staffing services. The company categories of services include professional employer services and staffing. Professional employer services offer payroll management, payroll taxes services, and workers' compensation coverage solutions, as well as workforce management services, including hiring and termination of employees. Staffing offers temporary staffing services, as well as contract staffing, long-term or indefinite on-site management, and direct placement services. The company operates in the United States of America. It generates maximum revenue from the Professional employer service fees.
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