Gross Margin % is calculated as gross profit divided by its revenue. CoreCivic's Gross Profit for the
three
months ended in Dec. 2023 was $123 Mil. CoreCivic's Revenue for the
three
months ended in Dec. 2023 was $491 Mil. Therefore, CoreCivic's Gross Margin % for the quarter that ended in Dec. 2023 was 24.97%.
Warning Sign:
CoreCivic Inc gross margin has been in long-term decline. The average rate of decline per year is -4.3%.
The historical rank and industry rank for CoreCivic's Gross Margin % or its related term are showing as below:
CXW'
s Gross Margin % Range Over the Past 10 Years
Min: 22.89 Med: 28.29 Max: 31.04
Current: 22.89
During the past 13 years, the highestGross Margin % of CoreCivic was 31.04%. The lowest was 22.89%. And the median was 28.29%.
CXW's Gross Margin % is ranked worse than 70.49% of 993
companies
in the Business Services industry
Industry Median: 34.65
vs CXW: 22.89
CoreCivic had a gross margin of 24.97% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for CoreCivic was -4.30% per year.
CoreCivic Gross Margin % Historical Data
The historical data trend for CoreCivic'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 CoreCivic's Gross Margin %
For the Security & Protection Services subindustry, CoreCivic'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.
CoreCivic's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, CoreCivic's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CoreCivic's Gross Margin % falls into.
* 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.
CoreCivic (NYSE:CXW) 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
CoreCivic had a gross margin of 24.97% 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.
CoreCivic Gross Margin % Related Terms
Thank you for viewing the detailed overview of CoreCivic's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
CoreCivic Inc is an owner and operator of private prisons and detention centers in the United States. It operates in three segments: Safety, Community, and Properties. The Safety segment operates roughly 50 facilities and owns majority of them. The Community segment owns and operates close to 30 residential reentry centers. The Properties segment owns approximately 15 properties for lease to third parties and government agencies. The vast majority of the company's revenue comes from the Safety segment. Its customers are federal, state, and local government agencies. Commercial contracts are typically 3-5 years long with multiple renewal options. CoreCivic operated as a Real Estate Investment Trust until January 2021 when it was reorganized as a taxable C Corporation.
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