IG Group Holdings (IG Group Holdings) Gross Margin % : 98.23% (As of Nov. 2023)

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What is IG Group Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. IG Group Holdings's Gross Profit for the six months ended in Nov. 2023 was $497 Mil. IG Group Holdings's Revenue for the six months ended in Nov. 2023 was $505 Mil. Therefore, IG Group Holdings's Gross Margin % for the quarter that ended in Nov. 2023 was 98.23%.

Warning Sign:

IG Group Holdings PLC gross margin has been in long-term decline. The average rate of decline per year is -5.4%.

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

IGGRF' s Gross Margin % Range Over the Past 10 Years
Min: 73.2 Med: 90.88 Max: 97.58
Current: 73.2

During the past 13 years, the highest Gross Margin % of IG Group Holdings was 97.58%. The lowest was 73.20%. And the median was 90.88%.

IGGRF's Gross Margin % is ranked better than
75.87% of 605 companies
in the Capital Markets industry
Industry Median: 48.7 vs IGGRF: 73.20

IG Group Holdings had a gross margin of 98.23% for the quarter that ended in Nov. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for IG Group Holdings was -5.40% per year.

IG Group Holdings Gross Margin % Historical Data

The historical data trend for IG Group Holdings'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.

IG Group Holdings Gross Margin % Chart

IG Group Holdings Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Gross Margin %

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96.11

97.58

80.77

79.91

75.44

IG Group Holdings Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Gross Margin %	Get a 7-Day Free Trial															98.95	61.94	97.86	50.64	98.23

Competitive Comparison of IG Group Holdings's Gross Margin %

For the Capital Markets subindustry, IG Group Holdings'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.

IG Group Holdings's Gross Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, IG Group Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where IG Group Holdings's Gross Margin % falls into.

IG Group Holdings Gross Margin % Calculation

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

IG Group Holdings's Gross Margin for the fiscal year that ended in May. 2023 is calculated as

Gross Margin % (A: May. 2023 )	=	Gross Profit (A: May. 2023 )	/	Revenue (A: May. 2023 )
	=	894.5	/	1185.643
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1185.643 - 291.136)	/	1185.643
	=	75.44 %

IG Group Holdings's Gross Margin for the quarter that ended in Nov. 2023 is calculated as

Gross Margin % (Q: Nov. 2023 )	=	Gross Profit (Q: Nov. 2023 )	/	Revenue (Q: Nov. 2023 )
	=	496.5	/	505.473
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(505.473 - 8.956)	/	505.473
	=	98.23 %

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.

IG Group Holdings (OTCPK:IGGRF) 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

IG Group Holdings had a gross margin of 98.23% for the quarter that ended in Nov. 2023 => 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.

IG Group Holdings Gross Margin % Related Terms

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IG Group Holdings (IG Group Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » IG Group Holdings PLC (OTCPK:IGGRF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

IGGHY:USA IGGl:UK IGG:UK I5G:Germany

Address

Cannon Bridge House, 25 Dowgate Hill, London, GBR, EC4R 2YA

Website

https://www.iggroup.com

IG Group Holdings PLC provides online trading services to its clients. The majority of the company's revenue stems from its derivative products and contracts for difference (CFDs). The company operates through various segments which are The U.K. segment which derives its revenue from financial spread bets, CFDs, binary options, and execution-only stockbroking. The Australian segment derives its revenue from CFDs and binary options. The European segment derives its revenue from CFDs, binary options, and execution-only stockbroking. The Rest of the World segment derives its revenue from the operation of a regulated futures and options exchange as well as CFDs and binary options. The company generates more than half of its revenue from the U.K., followed by Europe and Australia.