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LendInvest (LSE:LINV) Gross Margin % : 38.27% (As of Sep. 2023)


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What is LendInvest Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. LendInvest's Gross Profit for the six months ended in Sep. 2023 was £15.50 Mil. LendInvest's Revenue for the six months ended in Sep. 2023 was £40.50 Mil. Therefore, LendInvest's Gross Margin % for the quarter that ended in Sep. 2023 was 38.27%.


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

LSE:LINV' s Gross Margin % Range Over the Past 10 Years
Min: 37.61   Med: 56.28   Max: 56.5
Current: 37.61


During the past 5 years, the highest Gross Margin % of LendInvest was 56.50%. The lowest was 37.61%. And the median was 56.28%.

LSE:LINV's Gross Margin % is ranked worse than
55.26% of 38 companies
in the Banks industry
Industry Median: 42.94 vs LSE:LINV: 37.61

LendInvest had a gross margin of 38.27% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for LendInvest was 0.00% per year.


LendInvest Gross Margin % Historical Data

The historical data trend for LendInvest'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.

LendInvest Gross Margin % Chart

LendInvest Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
56.50 46.20 51.93 56.28 56.30

LendInvest Semi-Annual Data
Mar19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Gross Margin % Get a 7-Day Free Trial Premium Member Only 57.24 55.21 75.41 36.97 38.27

Competitive Comparison of LendInvest's Gross Margin %

For the Mortgage Finance subindustry, LendInvest'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.


LendInvest's Gross Margin % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, LendInvest's Gross Margin % distribution charts can be found below:

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



LendInvest Gross Margin % Calculation

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

LendInvest's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=47.8 / 84.9
=(Revenue - Cost of Goods Sold) / Revenue
=(84.9 - 37.1) / 84.9
=56.30 %

LendInvest's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=15.5 / 40.5
=(Revenue - Cost of Goods Sold) / Revenue
=(40.5 - 25) / 40.5
=38.27 %

* 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.


LendInvest  (LSE:LINV) 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

LendInvest had a gross margin of 38.27% for the quarter that ended in Sep. 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.


LendInvest Gross Margin % Related Terms

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


LendInvest (LSE:LINV) Business Description

Traded in Other Exchanges
Address
8 Mortimer Street, 2 Fitzroy Place, London, GBR, W1T 3JJ
LendInvest PLC is a platform for property finance. It offers short-term, development, and buy-to-let mortgages to intermediaries, landlords, and developers across the UK.

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