FirstCash Holdings (FirstCash Holdings) Gross Margin %

: 49.01% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. FirstCash Holdings's Gross Profit for the three months ended in Dec. 2023 was $418 Mil. FirstCash Holdings's Revenue for the three months ended in Dec. 2023 was $852 Mil. Therefore, FirstCash Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 49.01%.

Warning Sign:

FirstCash Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -3.3%.

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

FCFS' s Gross Margin % Range Over the Past 10 Years
Min: 46.34 Med: 54.46 Max: 56.23
Current: 47.82

During the past 13 years, the highest Gross Margin % of FirstCash Holdings was 56.23%. The lowest was 46.34%. And the median was 54.46%.

FCFS's Gross Margin % is ranked worse than
58.82% of 357 companies
in the Credit Services industry
Industry Median: 53.68 vs FCFS: 47.82

FirstCash Holdings had a gross margin of 49.01% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for FirstCash Holdings was -3.30% per year.

FirstCash Holdings Gross Margin % Historical Data

The historical data trend for FirstCash 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.

FirstCash Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

54.62

55.85

54.10

46.34

47.82

FirstCash Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																46.59	45.63	47.01	49.43	49.01

Competitive Comparison

For the Credit Services subindustry, FirstCash 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.

FirstCash Holdings Gross Margin % Distribution

For the Credit Services industry and Financial Services sector, FirstCash Holdings's Gross Margin % distribution charts can be found below:

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

FirstCash Holdings Gross Margin % Calculation

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

FirstCash Holdings'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 )
	=	1507.2	/	3151.796
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3151.796 - 1644.557)	/	3151.796
	=	47.82 %

FirstCash Holdings'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 )
	=	417.6	/	852.134
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(852.134 - 434.485)	/	852.134
	=	49.01 %

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.

FirstCash Holdings (NAS:FCFS) 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

FirstCash Holdings had a gross margin of 49.01% for the quarter that ended in Dec. 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.

FirstCash Holdings Gross Margin % Related Terms

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FirstCash Holdings (FirstCash Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » FirstCash Holdings Inc (NAS:FCFS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

FF60:Germany

Address

1600 West 7th Street, Fort Worth, TX, USA, 76102

Website

https://www.firstcash.com

FirstCash Holdings Inc operates pawn stores in the United States and Latin America. Its primary business involves making small loans secured by personal property. These pawn loans give the borrower the option of either repaying the loans with interest or forfeiting the property without further penalty. Close to 30% of total company revenue comes from interest earned on the loans. Close to 70% of total revenue comes from reselling forfeited property in the company's retail stores. Revenue is split almost equally between loans made in the United States, where the company has more than 300 retail locations, and loans made in Latin America, where the company has over 700 locations in Mexico and several more in Guatemala.

Executives

R Douglas Orr	officer: EVP & Chief Financial Officer	1600 WEST 7TH STREET, FORT WORTH TX 76102
Douglas Richard Rippel	director, 10 percent owner	8425 MYSTIC LAKES, MAIZE KS 67101
Randel G Owen	director	C/O EMERGENCY MEDICAL SERVICES CORP, 6200 SOUTH SYRACUSE WAY, GREENWOOD VILLAGE CO 80111
Howard F Hambleton	officer: AFF President	1660 WEST 7TH ST., FORT WORTH TX 76102
Raul Ramos	officer: SVP Latin American Operations	1600 WEST 7TH STREET, FORT WORTH TX 76102
James H Graves	director	ERWIN GRAVES & ASSOCIATES, 2100 MCKINNEY AVE STE 900, DALLAS TX 75205
Marthea Davis	director	1600 WEST 7TH ST., FORT WORTH TX 76102
Douglas R. Rippel Revocable Trust	10 percent owner	7570 W. 21ST STREET N, BUILDING 1010, SUITE C, WICHITA KS 67205
Aff Services, Inc.	10 percent owner	7570 W. 21ST STREET N, BUILDING 1010, SUITE C, WICHITA KS 67205
Paula K Garrett	director	1600 WEST 7TH ST, FORT WORTH TX 76102
Mikel D Faulkner	director	180 STATE STREET 200, SOUTHLAKE TX 76092
Daniel R Feehan	director	CASH AMERICA INTL INC, 1600 W &TH ST, FORT WORTH TX 76102
Thomas Brent Stuart	officer: President and COO	1600 W. 7TH STREET, FORT WORTH TX 76102
Anna M Alvarado	officer: General Counsel	1600 WEST 7TH STREET, FORT WORTH TX 76102
Daniel E Berce	director	801 CHERRY STREET, SUITE 3900, C/O GM FINANCIAL COMPANY, INC., FORT WORTH TX 76102