Gross Margin % is calculated as gross profit divided by its revenue. Paycor HCM's Gross Profit for the
three
months ended in Mar. 2024 was $128.3 Mil. Paycor HCM's Revenue for the
three
months ended in Mar. 2024 was $187.0 Mil. Therefore, Paycor HCM's Gross Margin % for the quarter that ended in Mar. 2024 was 68.59%.
The historical rank and industry rank for Paycor HCM's Gross Margin % or its related term are showing as below:
PYCR'
s Gross Margin % Range Over the Past 10 Years
Min: 56.21 Med: 59.12 Max: 66.14
Current: 66.09
During the past 5 years, the highestGross Margin % of Paycor HCM was 66.14%. The lowest was 56.21%. And the median was 59.12%.
PYCR's Gross Margin % is ranked better than 74.59% of 2633
companies
in the Software industry
Industry Median: 41.79
vs PYCR: 66.09
Paycor HCM had a gross margin of 68.59% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Paycor HCM was 0.00% per year.
Paycor HCM Gross Margin % Historical Data
The historical data trend for Paycor HCM'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 Paycor HCM's Gross Margin %
For the Software - Application subindustry, Paycor HCM'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.
Paycor HCM's Gross Margin % Distribution in the Software Industry
For the Software industry and Technology sector, Paycor HCM's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paycor HCM'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.
Paycor HCM (NAS:PYCR) 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
Paycor HCM had a gross margin of 68.59% for the quarter that ended in Mar. 2024 => 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.
Paycor HCM Gross Margin % Related Terms
Thank you for viewing the detailed overview of Paycor HCM's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Paycor HCM provides payroll and human capital management solutions to small and midsize clients in the United States via a software-as-a-service model. Alongside core payroll functionality, the firm's platform offers a suite of HCM solutions including talent management and time and attendance software, third-party integration capabilities, and industry-specific configurations. The firm targets customers with 10-1,000 employees and had over 30,000 customers as of June 2023.
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