The historical rank and industry rank for Elevate Credit's Gross Margin % or its related term are showing as below:
LTS:0XWD's Gross Margin % is not ranked *
in the Credit Services industry.
Industry Median: 53.89 * Ranked among companies with meaningful Gross Margin % only.
Elevate Credit had a gross margin of 34.92% for the quarter that ended in Sep. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Elevate Credit was 0.00% per year.
Elevate Credit Gross Margin % Historical Data
The historical data trend for Elevate Credit'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 Elevate Credit's Gross Margin %
For the Credit Services subindustry, Elevate Credit'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.
Elevate Credit's Gross Margin % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Elevate Credit's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Elevate Credit'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
Elevate Credit had a gross margin of 34.92% for the quarter that ended in Sep. 2022 => 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.
Elevate Credit Gross Margin % Related Terms
Thank you for viewing the detailed overview of Elevate Credit's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Elevate Credit Inc provides online credit solutions. The company provides credit to non-prime consumers, many of whom face reduced credit options and increased financial pressure due to macroeconomic changes over the past few decades. It has one reportable segment, which provides online financial services for subprime credit consumers, which is composed of the company's operations in the United States.
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