Zip Co (ASX:ZIP) Gross Profit : A$483.9 Mil (TTM As of Dec. 2023)

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What is Zip Co Gross Profit?

Zip Co's gross profit for the six months ended in Dec. 2023 was A$368.0 Mil. Zip Co's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was A$483.9 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Zip Co's gross profit for the six months ended in Dec. 2023 was A$368.0 Mil. Zip Co's Revenue for the six months ended in Dec. 2023 was A$430.0 Mil. Therefore, Zip Co's Gross Margin % for the quarter that ended in Dec. 2023 was 85.58%.

Zip Co had a gross margin of 85.58% for the quarter that ended in Dec. 2023 => Durable competitive advantage

During the past 13 years, the highest Gross Margin % of Zip Co was 66.93%. The lowest was 37.04%. And the median was 57.05%.

Warning Sign:

Zip Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5%.

Zip Co Gross Profit Historical Data

The historical data trend for Zip Co's Gross Profit 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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Zip Co Gross Profit Chart

Zip Co Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Profit

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55.47

90.60

196.55

229.64

401.21

Zip Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Profit	Get a 7-Day Free Trial															92.89	136.74	285.32	115.89	367.98

Competitive Comparison of Zip Co's Gross Profit

For the Credit Services subindustry, Zip Co's Gross Profit, along with its competitors' market caps and Gross Profit 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.

Zip Co's Gross Profit Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Zip Co's Gross Profit distribution charts can be found below:

* The bar in red indicates where Zip Co's Gross Profit falls into.

Zip Co Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Zip Co's Gross Profit for the fiscal year that ended in Jun. 2023 is calculated as

Gross Profit (A: Jun. 2023 )	=	Revenue	-	Cost of Goods Sold
	=	693.207	-	291.998
	=	401.2

Zip Co's Gross Profit for the quarter that ended in Dec. 2023 is calculated as

Gross Profit (Q: Dec. 2023 )	=	Revenue	-	Cost of Goods Sold
	=	429.999	-	62.023
	=	368.0

Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$483.9 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Zip Co's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	368.0	/	429.999
	=	85.58 %

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.

Zip Co (ASX:ZIP) Gross Profit 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

Zip Co had a gross margin of 85.58% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Zip Co Gross Profit Related Terms

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Zip Co (ASX:ZIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Zip Co Ltd (ASX:ZIP) » Definitions » Gross Profit

Comparable Companies

Traded in Other Exchanges

ZIZTF:USA

Address

126 Phillip Street, Level 5, Sydney, NSW, AUS, 2000

Website

https://www.zipmoneylimited.com.au

Zip is a diversified finance provider, offering consumer financing via a line of credit (via Zip Pay and Zip Money) and instalment-based finance (via QuadPay, Spotii, Twisto, and PayFlex); as well as lending to small to midsize enterprises (via Zip Business). Zip's fortunes are largely tied to the buy now, pay later, or BNPL, industry. Most of its products—Zip Pay, QuadPay (Zip U.S.), and PayFlex—do not charge interest based on outstanding balances. Around 60%-70% of Zip Pay's/Zip Money's revenue is derived from customers, mainly via account fees and interest. Meanwhile, its instalment businesses primarily generate revenue by receiving a margin from merchants, which compensates it for accepting all nonpayment risk and for encouraging consumers to transact more frequently.