Gross Margin % is calculated as gross profit divided by its revenue. Green Dot's Gross Profit for the
three
months ended in Dec. 2023 was $141 Mil. Green Dot's Revenue for the
three
months ended in Dec. 2023 was $366 Mil. Therefore, Green Dot's Gross Margin % for the quarter that ended in Dec. 2023 was 38.48%.
Warning Sign:
Green Dot Corp gross margin has been in long-term decline. The average rate of decline per year is -7.7%.
The historical rank and industry rank for Green Dot's Gross Margin % or its related term are showing as below:
GDOT'
s Gross Margin % Range Over the Past 10 Years
Min: 41.33 Med: 60.19 Max: 66.41
Current: 41.33
During the past 13 years, the highestGross Margin % of Green Dot was 66.41%. The lowest was 41.33%. And the median was 60.19%.
GDOT's Gross Margin % is ranked worse than 66.76% of 355
companies
in the Credit Services industry
Industry Median: 53.89
vs GDOT: 41.33
Green Dot had a gross margin of 38.48% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Green Dot was -7.70% per year.
Green Dot Gross Margin % Historical Data
The historical data trend for Green Dot'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 Green Dot's Gross Margin %
For the Credit Services subindustry, Green Dot'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.
Green Dot's Gross Margin % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Green Dot's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Green Dot'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.
Green Dot (NYSE:GDOT) 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
Green Dot had a gross margin of 38.48% 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.
Green Dot Gross Margin % Related Terms
Thank you for viewing the detailed overview of Green Dot's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Green Dot Corp is a financial technology company that provides financial services for consumers in the United States without good banking options. Through its Account Services segment, the company offers GoBank mobile checking and Visa- or Mastercard-branded prepaid debit cards, both reloadable and non-reloadable. Green Dot also supplies private-label reloadable cards for Wal-Mart. Account services revenue is generated through monthly maintenance fees, ATM fees, new card fees, and interchange fees. The company's Processing and Settlement Services segment generates revenue through service fees on debit card reloads and tax refund processing. The tax refund processing business earns fees when customers of third-party tax preparers choose to pay the preparer's fee through Green Dot's service.
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