Vertu Motors (Vertu Motors) Gross Margin % : 10.83% (As of Feb. 2024)

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What is Vertu Motors Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vertu Motors's Gross Profit for the six months ended in Feb. 2024 was $314 Mil. Vertu Motors's Revenue for the six months ended in Feb. 2024 was $2,900 Mil. Therefore, Vertu Motors's Gross Margin % for the quarter that ended in Feb. 2024 was 10.83%.

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

VTMTF' s Gross Margin % Range Over the Past 10 Years
Min: 10.8 Med: 11 Max: 12.04
Current: 10.94

During the past 13 years, the highest Gross Margin % of Vertu Motors was 12.04%. The lowest was 10.80%. And the median was 11.00%.

VTMTF's Gross Margin % is ranked worse than
80.88% of 1266 companies
in the Vehicles & Parts industry
Industry Median: 19.67 vs VTMTF: 10.94

Vertu Motors had a gross margin of 10.83% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vertu Motors was 0.40% per year.

Vertu Motors Gross Margin % Historical Data

The historical data trend for Vertu Motors'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.

Vertu Motors Gross Margin % Chart

Vertu Motors Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Gross Margin %

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10.90

11.82

12.04

11.17

10.93

Vertu Motors Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
Gross Margin %	Get a 7-Day Free Trial															12.56	11.19	11.15	11.03	10.83

Competitive Comparison of Vertu Motors's Gross Margin %

For the Auto & Truck Dealerships subindustry, Vertu Motors'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.

Vertu Motors's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Vertu Motors's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Vertu Motors's Gross Margin % falls into.

Vertu Motors Gross Margin % Calculation

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

Vertu Motors's Gross Margin for the fiscal year that ended in Feb. 2024 is calculated as

Gross Margin % (A: Feb. 2024 )	=	Gross Profit (A: Feb. 2024 )	/	Revenue (A: Feb. 2024 )
	=	651.6	/	5959.074
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5959.074 - 5307.458)	/	5959.074
	=	10.93 %

Vertu Motors's Gross Margin for the quarter that ended in Feb. 2024 is calculated as

Gross Margin % (Q: Feb. 2024 )	=	Gross Profit (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	314.2	/	2900.42
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2900.42 - 2586.197)	/	2900.42
	=	10.83 %

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.

Vertu Motors (OTCPK:VTMTF) 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

Vertu Motors had a gross margin of 10.83% for the quarter that ended in Feb. 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.

Vertu Motors Gross Margin % Related Terms

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Vertu Motors (Vertu Motors) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Vertu Motors PLC (OTCPK:VTMTF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

VTU.GB:UK VTU:UK

Address

Vertu House, 5th Avenue Business Park, Team Valley, Gateshead, Tyne and Wear, GBR, NE11 0XA

Website

https://www.vertumotors.com

Vertu Motors PLC is an automotive retailer in the United Kingdom. The business activity of the group includes selling new cars, motorcycles, commercial vehicles, and used vehicles, together with after-sale services. It operates through various franchise dealerships, such as Volkswagen, Land Rover, Audi, Mercedes-Benz, Jaguar, Kia, Toyota, and many others. The company generates maximum revenue from Used cars.