Vroom's gross profit for the
three
months ended in Dec. 2023 was $29.0 Mil. Vroom's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $161.9 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Vroom's gross profit for the
three
months ended in Dec. 2023 was $29.0 Mil. Vroom's Revenue for the
three
months ended in Dec. 2023 was $235.9 Mil. Therefore, Vroom's Gross Margin % for the quarter that ended in Dec. 2023 was 12.31%.
Vroom had a gross margin of 12.31% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
During the past 6 years, the highestGross Margin % of Vroom was 18.13%. The lowest was 4.85%. And the median was 6.73%.
Vroom Gross Profit Historical Data
The historical data trend for Vroom's Gross Profit 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.
For the Auto & Truck Dealerships subindustry, Vroom's Gross Profit, along with its competitors' market caps and Gross Profit 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.
Vroom's Gross Profit Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Vroom's Gross Profit distribution charts can be found below:
* The bar in red indicates where Vroom's Gross Profit falls into.
Vroom Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Vroom's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $161.9 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Vroom's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as
* 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.
Vroom (NAS:VRM) Gross Profit 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
Vroom had a gross margin of 12.31% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
Vroom Gross Profit Related Terms
Thank you for viewing the detailed overview of Vroom's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Vroom Inc is an end-to-end e-commerce platform for the used vehicle industry. The Company's scalable, data-driven technology brings all phases of the car buying and selling process to consumers offering an extensive selection of used vehicles, transparent pricing, competitive financing, and at-home pick-up and delivery. Its three reportable segments are: The E-commerce segment represents retail sales of used vehicles through its e-commerce platform and fees earned on sales of value-added products associated with those vehicle sales, The Wholesale segment represents sales of used vehicles through wholesale channels, and The Retail Financing segment represents UACC's operations with its network of third-party dealership customers.
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