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RA International Group (LSE:RAI) Gross Margin % : 8.35% (As of Jun. 2024)


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What is RA International Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. RA International Group's Gross Profit for the six months ended in Jun. 2024 was £2.00 Mil. RA International Group's Revenue for the six months ended in Jun. 2024 was £23.94 Mil. Therefore, RA International Group's Gross Margin % for the quarter that ended in Jun. 2024 was 8.35%.

Warning Sign:

RA International Group PLC gross margin has been in long-term decline. The average rate of decline per year is -22.9%.


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

LSE:RAI' s Gross Margin % Range Over the Past 10 Years
Min: 8.26   Med: 29.17   Max: 38.95
Current: 12.68


During the past 9 years, the highest Gross Margin % of RA International Group was 38.95%. The lowest was 8.26%. And the median was 29.17%.

LSE:RAI's Gross Margin % is ranked worse than
69.63% of 1676 companies
in the Construction industry
Industry Median: 20.175 vs LSE:RAI: 12.68

RA International Group had a gross margin of 8.35% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for RA International Group was -22.90% per year.


RA International Group Gross Margin % Historical Data

The historical data trend for RA International Group'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.

RA International Group Gross Margin % Chart

RA International Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 31.70 29.17 22.05 8.26 14.47

RA International Group Semi-Annual Data
Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 10.32 6.49 11.79 17.38 8.35

Competitive Comparison of RA International Group's Gross Margin %

For the Engineering & Construction subindustry, RA International Group'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.


RA International Group's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, RA International Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where RA International Group's Gross Margin % falls into.


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RA International Group Gross Margin % Calculation

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

RA International Group'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 )
=6.7 / 46.046
=(Revenue - Cost of Goods Sold) / Revenue
=(46.046 - 39.384) / 46.046
=14.47 %

RA International Group's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=2 / 23.938
=(Revenue - Cost of Goods Sold) / Revenue
=(23.938 - 21.939) / 23.938
=8.35 %

* 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.


RA International Group  (LSE:RAI) 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

RA International Group had a gross margin of 8.35% for the quarter that ended in Jun. 2024 => No sustainable 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.


RA International Group Gross Margin % Related Terms

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


RA International Group Business Description

Traded in Other Exchanges
N/A
Address
One Fleet Place, London, GBR, EC4M 7WS
RA International Group PLC provides integrated supply chain, construction and integrated facilities management services. The principal activity of RA International Group plc is providing services in demanding and remote areas. These services include construction, integrated facilities management, and supply chain services. The company's only reportable segment is the provision of services in demanding and remote areas. It offers civil and general construction services; operation and maintenance services. The company generates revenue from services such as Construction, Integrated facilities management, and Supply chain services. Its geographical segments include Africa and Others of which it derives a majority of its revenue from Africa.

RA International Group Headlines

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