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Inspired Entertainment (Inspired Entertainment) Gross Margin % : 64.29% (As of Dec. 2023)


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What is Inspired Entertainment Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Inspired Entertainment's Gross Profit for the three months ended in Dec. 2023 was $52.2 Mil. Inspired Entertainment's Revenue for the three months ended in Dec. 2023 was $81.2 Mil. Therefore, Inspired Entertainment's Gross Margin % for the quarter that ended in Dec. 2023 was 64.29%.

Warning Sign:

Inspired Entertainment Inc gross margin has been in long-term decline. The average rate of decline per year is -4.8%.


The historical rank and industry rank for Inspired Entertainment's Gross Margin % or its related term are showing as below:

INSE' s Gross Margin % Range Over the Past 10 Years
Min: 60.46   Med: 69.29   Max: 78.22
Current: 60.46


During the past 9 years, the highest Gross Margin % of Inspired Entertainment was 78.22%. The lowest was 60.46%. And the median was 69.29%.

INSE's Gross Margin % is ranked better than
70.76% of 766 companies
in the Travel & Leisure industry
Industry Median: 43.24 vs INSE: 60.46

Inspired Entertainment had a gross margin of 64.29% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Inspired Entertainment was -4.80% per year.


Inspired Entertainment Gross Margin % Historical Data

The historical data trend for Inspired Entertainment'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.

* Premium members only.

Inspired Entertainment Gross Margin % Chart

Inspired Entertainment Annual Data
Trend Dec14 Dec15 Sep17 Sep18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 76.47 69.29 66.18 66.87 60.46

Inspired Entertainment Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 64.49 66.56 63.60 50.67 64.29

Competitive Comparison of Inspired Entertainment's Gross Margin %

For the Gambling subindustry, Inspired Entertainment'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.


Inspired Entertainment's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Inspired Entertainment's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Inspired Entertainment's Gross Margin % falls into.



Inspired Entertainment Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Inspired Entertainment's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=195.3 / 323
=(Revenue - Cost of Goods Sold) / Revenue
=(323 - 127.7) / 323
=60.46 %

Inspired Entertainment's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=52.2 / 81.2
=(Revenue - Cost of Goods Sold) / Revenue
=(81.2 - 29) / 81.2
=64.29 %

* 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.


Inspired Entertainment  (NAS:INSE) 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

Inspired Entertainment had a gross margin of 64.29% for the quarter that ended in Dec. 2023 => 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.


Inspired Entertainment Gross Margin % Related Terms

Thank you for viewing the detailed overview of Inspired Entertainment's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Inspired Entertainment (Inspired Entertainment) Business Description

Traded in Other Exchanges
N/A
Address
250 West 57th Street, Suite 415, New York, NY, USA, 10107
Inspired Entertainment Inc is a gaming technology company based in the United States. Its core business involves the development of Virtual Sports and Server-Based Gaming systems with associated terminals and digital content to regulate betting, gaming, and lottery operators around the world. It operates through four segments namely Gaming; Virtual Sports; Interactive and Leisure. The company generates maximum revenue from the Gaming segment. Its Gaming segment supplies gaming terminals as well as gaming software and games for the terminals provided to betting offices, casinos, gaming halls, and high street adult gaming centers. Geographically, it derives a majority of revenue from the UK.
Executives
Michael R. Chambrello director C/O SCIENTIFIC GAMES CORPORATION, 750 LEXINGTON AVENUE, 25TH FLOOR, NEW YORK NY 10022
Andrew C Stone officer: See Remarks C/O INSPIRED ENTERTAINMENT, INC., 250 WEST 57TH STREET SUITE 415, NEW YORK NY 10107
Evan Wainhouse Davis 10 percent owner 15 EAST LEVERING MILL ROAD, BALA CYNWYD PA 19004
Katja Tautscher director BOREALIS AG, WAGRAMER STRASSE 17 TO 19, VIENNA C4 1220
Desiree G Rogers director C/O PINNACLE ENTERTAINMENT, INC., 3980 HOWARD HUGHES PARKWAY, LAS VEGAS NV 89169
Marcus Alexander Hoye director RUNWAY EAST BUILDING, 10 FINSBURY SQUARE, LONDON X0 EC2A1AF
Steven M Saferin director C/O SCIENTIFIC GAMES INTERNATIONAL, INC., 1500 BLUEGRASS LAKES PARKWAY, ALPHARETTA, GA 30004
Brooks H Pierce officer: President and COO C/O SCIENTIFIC GAMES CORPORATION, 750 LEXINGTON AVENUE, NEW YORK, NY 10022
Carys Damon officer: General Counsel 250 WEST 57TH STREET SUITE 2223, NEW YORK NY 10107
Partners Llp Vitruvian 10 percent owner 105 WIGMORE STREET, LONDON X0 W1U 1QY
Luke Lyon Alvarez director, officer: Chief Executive Officer 4 PITMAN'S ALLEY, GIBRALTAR J1 GX11 1AA
Hg Vora Capital Management, Llc 10 percent owner 330 MADISON AVENUE, 21ST FLOOR, NEW YORK NY 10017
Vip I B L.p. 10 percent owner 105 WIGMORE STREET, LONDON X0 WIV IQY
John M Vandemore director 6355 S. BUFFALO DRIVE, LAS VEGAS NV 89521
Ira H Raphaelson director LAS VEGAS SANDS CORP., 3355 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109

Inspired Entertainment (Inspired Entertainment) Headlines

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