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Resources Connection Gross Margin %

: 39.00% (As of Aug. 2021)
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Gross Margin % is calculated as gross profit divided by its revenue. Resources Connection's Gross Profit for the three months ended in Aug. 2021 was $71.4 Mil. Resources Connection's Revenue for the three months ended in Aug. 2021 was $183.1 Mil. Therefore, Resources Connection's Gross Margin % for the quarter that ended in Aug. 2021 was 39.00%.


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

NAS:RGP' s Gross Margin % Range Over the Past 10 Years
Min: 37.62   Med: 38.44   Max: 39.17
Current: 38.32

37.62
39.17

During the past 13 years, the highest Gross Margin % of Resources Connection was 39.17%. The lowest was 37.62%. And the median was 38.44%.

NAS:RGP's Gross Margin % is ranked higher than
56% of the 957 Companies
in the Business Services industry.

( Industry Median: 33.46 vs. NAS:RGP: 38.32 )

Resources Connection had a gross margin of 39.00% for the quarter that ended in Aug. 2021 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Resources Connection was 0.20% per year.


Resources Connection Gross Margin % Historical Data

The historical data trend for Resources Connection'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.

Resources Connection Annual Data
Trend May12 May13 May14 May15 May16 May17 May18 May19 May20 May21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.94 37.62 38.74 39.17 38.35

Resources Connection Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.29 37.97 36.42 39.63 39.00

Competitive Comparison

For the Consulting Services subindustry, Resources Connection'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.

   

Resources Connection Gross Margin % Distribution

For the Business Services industry and Industrials sector, Resources Connection's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Resources Connection's Gross Margin % falls into.



Resources Connection Gross Margin % Calculation

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

Resources Connection's Gross Margin for the fiscal year that ended in May. 2021 is calculated as

Gross Margin % (A: May. 2021 )=Gross Profit (A: May. 2021 ) / Revenue (A: May. 2021 )
=241.4 / 629.516
=(Revenue - Cost of Goods Sold) / Revenue
=(629.516 - 388.112) / 629.516
=38.35 %

Resources Connection's Gross Margin for the quarter that ended in Aug. 2021 is calculated as


Gross Margin % (Q: Aug. 2021 )=Gross Profit (Q: Aug. 2021 ) / Revenue (Q: Aug. 2021 )
=71.4 / 183.14
=(Revenue - Cost of Goods Sold) / Revenue
=(183.14 - 111.708) / 183.14
=39.00 %

* 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.


Resources Connection  (NAS:RGP) 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

Resources Connection had a gross margin of 39.00% for the quarter that ended in Aug. 2021 => 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.


Resources Connection Gross Margin % Related Terms

Thank you for viewing the detailed overview of Resources Connection's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Resources Connection Business Description

Resources Connection logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
17101 Armstrong Avenue, Suite 100, Irvine, CA, USA, 92614
Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals. The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support. Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.
Executives
Duchene Kate W director, officer: President & CEO C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Ryu Jennifer Y officer: CFO 17101 ARMSTRONG AVENUE IRVINE CA 92614
Pisano A Robert director C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Von Maltzan Marco director 17101 ARMSTRONG AVE #100 RGP IRVINE CA 92614
Crawford Susan J director 17101 ARMSTRONG AVE IRVINE CA 92614
Shih Anne director 17101 ARMSTRONG AVENUE IRVINE CA 92614
Wargotz Michael H director AXCESS WORLDWIDE 515 MADISON AVE., 15TH FLOOR NEW YORK NY 10022
Cherbak Anthony director 695 TOWN CENTER DRIVE SUITE 600 COSTA MESA CA 92626
Kistinger Robert F director 17101 ARMSTRONG AVE IRVINE CA 92614
Sykes Jolene director 695 TOWN CENTER DRIVE SUITE 606 COSTA MESA CA 92626
Dimick Neil F director BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Brackney Timothy L officer: President and COO 12 ANDERSON WAY MENLO PARK CA 94025
Bower John D officer: Chief Accounting Officer C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Murray Donald B director RESOURCES CONNECTION 695 TOWN CTR DR STE 600 COSTA MESA CA 92626
Mueller Herbert M officer: CFO & EVP PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MUELLER HERBERT M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

Resources Connection Headlines

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