Gross Margin % is calculated as gross profit divided by its revenue. Lyft's Gross Profit for the
three
months ended in Dec. 2023 was $481 Mil. Lyft's Revenue for the
three
months ended in Dec. 2023 was $1,225 Mil. Therefore, Lyft's Gross Margin % for the quarter that ended in Dec. 2023 was 39.26%.
The historical rank and industry rank for Lyft's Gross Margin % or its related term are showing as below:
LYFT'
s Gross Margin % Range Over the Past 10 Years
Min: 18.73 Med: 40.17 Max: 46.94
Current: 42.23
During the past 8 years, the highestGross Margin % of Lyft was 46.94%. The lowest was 18.73%. And the median was 40.17%.
LYFT's Gross Margin % is ranked better than 50.8% of 2624
companies
in the Software industry
Industry Median: 41.67
vs LYFT: 42.23
Lyft had a gross margin of 39.26% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Lyft was 0.70% per year.
Lyft Gross Margin % Historical Data
The historical data trend for Lyft'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.
For the Software - Application subindustry, Lyft'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.
Lyft's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Lyft's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lyft'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.
Lyft (NAS:LYFT) 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
Lyft had a gross margin of 39.26% for the quarter that ended in Dec. 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.
Lyft Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lyft's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lyft is the second-largest ride-sharing service provider in the U.S. and Canada, connecting riders and drivers over the Lyft app. Incorporated in 2013, Lyft offers a variety of rides via private vehicles, including traditional private rides, shared rides, and luxury ones. Besides ride-share, Lyft also has entered the bike- and scooter-share market to bring multimodal transportation options to users.
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