Gross Margin % is calculated as gross profit divided by its revenue. Reliance Global Group's Gross Profit for the
three
months ended in Dec. 2023 was $0.02 Mil. Reliance Global Group's Revenue for the
three
months ended in Dec. 2023 was $3.32 Mil. Therefore, Reliance Global Group's Gross Margin % for the quarter that ended in Dec. 2023 was 0.54%.
Warning Sign:
Reliance Global Group Inc gross margin has been in long-term decline. The average rate of decline per year is -28.7%.
The historical rank and industry rank for Reliance Global Group's Gross Margin % or its related term are showing as below:
RELI'
s Gross Margin % Range Over the Past 10 Years
Min: -51.32 Med: 27.65 Max: 92.31
Current: 18.18
During the past 10 years, the highestGross Margin % of Reliance Global Group was 92.31%. The lowest was -51.32%. And the median was 27.65%.
RELI's Gross Margin % is ranked worse than 84.62% of 52
companies
in the Insurance industry
Industry Median: 43.135
vs RELI: 18.18
Reliance Global Group had a gross margin of 0.54% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Reliance Global Group was -28.70% per year.
Reliance Global Group Gross Margin % Historical Data
The historical data trend for Reliance Global Group'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.
Competitive Comparison of Reliance Global Group's Gross Margin %
For the Insurance Brokers subindustry, Reliance Global Group'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.
Reliance Global Group's Gross Margin % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Reliance Global Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Reliance Global Group'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.
Reliance Global Group (NAS:RELI) 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
Reliance Global Group had a gross margin of 0.54% for the quarter that ended in Dec. 2023 => 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.
Reliance Global Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Reliance Global Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Reliance Global Group (Reliance Global Group) Business Description
Reliance Global Group Inc operates as a holding company with diversified interests in the insurance market, as well as other related sectors. The company focuses on growing by pursuing an acquisition strategy, initially and primarily focused on wholesale and retail insurance agencies. Its primary strategy is to identify specific risks to reward arbitrage opportunities and develop these on a national platform, thereby increasing revenues and returns, and then identify and acquire undervalued wholesale and retail insurance agencies with operations in growing or underserved segments, expand and optimize their operations, and achieve asset value appreciation while generating interim cash flows. It generates revenue in the form of commissions.
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