Lumi Rental Co (SAU:4262) Gross Margin % : 29.55% (As of Mar. 2024)

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What is Lumi Rental Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lumi Rental Co's Gross Profit for the three months ended in Mar. 2024 was ﷼113.5 Mil. Lumi Rental Co's Revenue for the three months ended in Mar. 2024 was ﷼384.0 Mil. Therefore, Lumi Rental Co's Gross Margin % for the quarter that ended in Mar. 2024 was 29.55%.

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

SAU:4262' s Gross Margin % Range Over the Past 10 Years
Min: 32.47 Med: 33.83 Max: 34.42
Current: 32.47

During the past 2 years, the highest Gross Margin % of Lumi Rental Co was 34.42%. The lowest was 32.47%. And the median was 33.83%.

SAU:4262's Gross Margin % is ranked worse than
53.38% of 991 companies
in the Business Services industry
Industry Median: 34.73 vs SAU:4262: 32.47

Lumi Rental Co had a gross margin of 29.55% for the quarter that ended in Mar. 2024 => Competition eroding margins

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

Lumi Rental Co Gross Margin % Historical Data

The historical data trend for Lumi Rental Co'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.

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Lumi Rental Co Gross Margin % Chart

Lumi Rental Co Annual Data

Trend

Dec22

Dec23

Gross Margin %

33.23

34.42

Lumi Rental Co Quarterly Data
	Sep22	Dec22	Mar23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial			35.18	35.52	32.58	35.94	29.55

Competitive Comparison of Lumi Rental Co's Gross Margin %

For the Rental & Leasing Services subindustry, Lumi Rental Co'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.

Lumi Rental Co's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Lumi Rental Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lumi Rental Co's Gross Margin % falls into.

Lumi Rental Co Gross Margin % Calculation

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

Lumi Rental Co'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 )
	=	380.5	/	1105.578
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1105.578 - 725.066)	/	1105.578
	=	34.42 %

Lumi Rental Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	113.5	/	384.044
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(384.044 - 270.57)	/	384.044
	=	29.55 %

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.

Lumi Rental Co (SAU:4262) 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

Lumi Rental Co had a gross margin of 29.55% for the quarter that ended in Mar. 2024 => 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.

Lumi Rental Co Gross Margin % Related Terms

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Lumi Rental Co (SAU:4262) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Lumi Rental Co (SAU:4262) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Imam Saud bin Abdulaziz bin, P.O. Box 6477, Muhammad Street, Al-Taawun District, Riyadh, SAU, 12476

Website

https://www.lumirental.com

Lumi Rental Co is a Car rental company which offers lease services to corporate and Government sector clients, provides rentals through a network of Thirty airport and city branches across the Kingdom and via digital channels, and sells used vehicles reaching the end of their useful life. The company has two reportable segments which are Leasing includes Providing vehicles on long term leases to corporate and government customers . Rental includes Providing vehicles on daily, weekly, monthly rentals to walking and corporate customers.

Lumi Rental Co (SAU:4262) Headlines

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