The historical rank and industry rank for Solera Holdings's Gross Margin % or its related term are showing as below:
SLH's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.71 * Ranked among companies with meaningful Gross Margin % only.
Solera Holdings had a gross margin of 62.83% for the quarter that ended in Dec. 2015 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Solera Holdings was 0.00% per year.
Solera Holdings Gross Margin % Historical Data
The historical data trend for Solera 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.
Competitive Comparison of Solera Holdings's Gross Margin %
For the Software - Application subindustry, Solera 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.
Solera Holdings's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Solera Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Solera Holdings'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.
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
Solera Holdings had a gross margin of 62.83% for the quarter that ended in Dec. 2015 => 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.
Solera Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Solera Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Solera Holdings (Solera Holdings) Business Description
Solera Holdings Inc was incorporated on February 1, 2005 in Delaware. The Company is a provider of software and services to the automobile insurance claims processing industry. It also provides products and services that complement or leverage the insurance claims processing software and services. These core extensions include products and services for used vehicle validation, electronic titling, property claims management, fraud detection, salvage yard management, disposition of salvage vehicles, subrogation, and data and analytics used by insurers in the re-underwriting of their insured drivers. Its insurance claims processing customers include insurance companies, collision repair facilities, assessors and automotive recyclers. The Company operates in more than 65 countries across six continents. Its sales and marketing personnel identify and target specific sales opportunities and manage customer relationships. The Company is subject to government regulation and, from time to time, companies in similar lines of business to it are subject to adverse publicity concerning the use of such data.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SLH has been successfully added to your 