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Global Payments Gross Margin %

: 46.55% (As of Jun. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Global Payments's Gross Profit for the three months ended in Jun. 2020 was $778 Mil. Global Payments's Revenue for the three months ended in Jun. 2020 was $1,672 Mil. Therefore, Global Payments's Gross Margin % for the quarter that ended in Jun. 2020 was 46.55%.

Warning Sign:

Global Payments Inc gross margin has been in long term decline. The average rate of decline per year is -1.1%.


NYSE:GPN' s Gross Margin % Range Over the Past 10 Years
Min: 51.5   Med: 63.44   Max: 67.47
Current: 50.61

51.5
67.47

During the past 13 years, the highest Gross Margin % of Global Payments was 67.47%. The lowest was 51.50%. And the median was 63.44%.

NYSE:GPN's Gross Margin % is ranked higher than
73% of the 922 Companies
in the Business Services industry.

( Industry Median: 32.65 vs. NYSE:GPN: 50.61 )

Global Payments had a gross margin of 46.55% for the quarter that ended in Jun. 2020 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Global Payments was -1.10% per year.


Global Payments Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Global Payments Annual Data
May10 May11 May12 May13 May14 May15 May16 Dec17 Dec18 Dec19
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 63.15 60.40 51.50 67.47 57.78

Global Payments Quarterly Data
Aug15 Nov15 Feb16 May16 Aug16 Nov16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
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 67.68 61.33 47.75 50.94 46.55

Competitive Comparison
* 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.


Global Payments Gross Margin % Distribution

* The bar in red indicates where Global Payments's Gross Margin % falls into.



Global Payments Gross Margin % Calculation

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

Global Payments's Gross Margin for the fiscal year that ended in Dec. 2019 is calculated as

Gross Margin % (A: Dec. 2019 )=Gross Profit (A: Dec. 2019 ) / Revenue (A: Dec. 2019 )
=2838.1 / 4911.892
=(Revenue - Cost of Goods Sold) / Revenue
=(4911.892 - 2073.803) / 4911.892
=57.78 %

Global Payments's Gross Margin for the quarter that ended in Jun. 2020 is calculated as


Gross Margin % (Q: Jun. 2020 )=Gross Profit (Q: Jun. 2020 ) / Revenue (Q: Jun. 2020 )
=778.2 / 1671.952
=(Revenue - Cost of Goods Sold) / Revenue
=(1671.952 - 893.74) / 1671.952
=46.55 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Global Payments  (NYSE:GPN) 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

Global Payments had a gross margin of 46.55% for the quarter that ended in Jun. 2020 => 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.


Global Payments Gross Margin % Related Terms


Global Payments Gross Margin % Headlines

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