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Gross Margin % is calculated as gross profit divided by its revenue. Zovio's Gross Profit for the
three
months ended in Sep. 2022 was $6.0 Mil. Zovio's Revenue for the
three
months ended in Sep. 2022 was $22.5 Mil. Therefore, Zovio's Gross Margin % for the quarter that ended in Sep. 2022 was 26.56%.
The historical rank and industry rank for Zovio's Gross Margin % or its related term are showing as below:
ZVOI's Gross Margin % is not ranked *
in the Education industry.
Industry Median: 48.02 * Ranked among companies with meaningful Gross Margin % only.
Zovio had a gross margin of 26.56% for the quarter that ended in Sep. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Zovio was 0.00% per year.
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
Zovio had a gross margin of 26.56% 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.
Zovio Gross Margin % Related Terms
Zovio Gross Margin % Historical Data
* Premium members only.
The historical data trend for Zovio'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 Education & Training Services subindustry, Zovio'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.
Zovio Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Zovio's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zovio'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.
Zovio (ZVOI) has a Gross Margin % of 26.56% as of Sep. 2022. Gross margin is the ratio of total gross profit to net sales. View historical data on Zovio and its competitors.
Is Zovio's Gross Margin % too high?
Zovio's current Gross Margin % is 26.56%. The Education industry median Gross Margin % is 48.02. Zovio's value of 26.56% is 44.7% below this industry median. Overall, Zovio has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Zovio's Gross Margin % compare to GSHN and EDU?
Zovio's Gross Margin % of 26.56% can be compared against companies in the Education industry. The industry median Gross Margin % is 48.02. Zovio's value of 26.56% is 44.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Education company?
The median Gross Margin % among Education companies is 48.02, based on 244 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zovio's current Gross Margin % of 26.56% is 44.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Zovio and its competitors. For the Education industry, the median Gross Margin % is 48.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zovio's current Gross Margin % is 26.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zovio stock overvalued right now?
Zovio (ZVOI) has a current Gross Margin % of 26.56%. The current Gross Margin % is 26.56% and 44.7% below the Education industry median of 48.02. Zovio's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Zovio (ZVOI), the current Gross Margin % is 26.56% as of Sep. 2022. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Zovio Inc is an education technology services company that partners with higher education institutions and employers to deliver solutions to help learners and leaders achieve their aspirations. It has developed tools for faculty and administration. The company's Faculty Management System (FMS) supports faculty onboarding, scheduling, payroll, professional development, faculty credentials, and more.
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