Life Time Group Holdings (Life Time Group Holdings) Gross Margin %

: 48.42% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Life Time Group Holdings's Gross Profit for the three months ended in Dec. 2023 was $271 Mil. Life Time Group Holdings's Revenue for the three months ended in Dec. 2023 was $559 Mil. Therefore, Life Time Group Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 48.42%.

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

LTH' s Gross Margin % Range Over the Past 10 Years
Min: 30.4 Med: 43.3 Max: 46.57
Current: 46.57

During the past 6 years, the highest Gross Margin % of Life Time Group Holdings was 46.57%. The lowest was 30.40%. And the median was 43.30%.

LTH's Gross Margin % is ranked better than
54.77% of 765 companies
in the Travel & Leisure industry
Industry Median: 43.19 vs LTH: 46.57

Life Time Group Holdings had a gross margin of 48.42% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Life Time Group Holdings was 0.00% per year.

Life Time Group Holdings Gross Margin % Historical Data

The historical data trend for Life Time 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.

Life Time Group Holdings Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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45.21

30.40

35.96

41.39

46.57

Life Time Group Holdings Quarterly Data
	Dec18	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial												46.30	46.34	46.13	45.42	48.42

Competitive Comparison

For the Leisure subindustry, Life Time 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.

Life Time Group Holdings Gross Margin % Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Life Time Group Holdings's Gross Margin % distribution charts can be found below:

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

Life Time Group Holdings Gross Margin % Calculation

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

Life Time Group 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 )
	=	1032.2	/	2216.593
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2216.593 - 1184.37)	/	2216.593
	=	46.57 %

Life Time Group 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 )
	=	270.6	/	558.834
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(558.834 - 288.257)	/	558.834
	=	48.42 %

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.

Life Time Group Holdings (NYSE:LTH) 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

Life Time Group Holdings had a gross margin of 48.42% 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.

Life Time Group Holdings Gross Margin % Related Terms

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Life Time Group Holdings (Life Time Group Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Life Time Group Holdings Inc (NYSE:LTH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2902 Corporate Place, Chanhassen, MN, USA, 55317

Website

https://www.lifetime.life

Life Time Group Holdings Inc is engaged in designing, building, and operating distinctive and large, multi-use sports and athletic, professional fitness, family recreation and spa centres in a resort-like environment, principally in residential locations of metropolitan areas in the United States and Canada.

Executives

Bahram Akradi	director, 10 percent owner, officer: Founder & CEO	2902 CORPORATE PLACE, CHANHASSEN MN 55317
Erik Weaver	officer: SVP & Controller	C/O ORTHO-CLINICAL DIAGNOSTICS, INC., 1001 ROUTE 202, RARITAN NJ 08869
Robert P. Houghton	officer: EVP & CHIEF FINANCIAL OFFICER	2902 CORPORATE PLACE, CHANHASSEN MN 55317
Teacher Retirement System Of Texas	other: Member of a group that is 10%	1000 RED RIVER STREET, AUSTIN TX 78701
Donna Coallier	director	2902 CORPORATE PLACE, CHANHASSEN MN 55317
Jon Winkelried	10 percent owner	C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Tpg Gp A, Llc	10 percent owner	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Jimena Almendares	director	C/O LIFE TIME GROUP HOLDINGS, INC., 2902 CORPORATE PLACE, CHANHASSEN MN 55317
Lnk Life Time Fund, L.p.	director, 10 percent owner	81 MAIN STREET, WHITE PLAINS NY 10601
Partners Group Private Equity (master Fund), Llc	10 percent owner	1114 AVENUE OF THE AMERICAS, 37TH FLOOR, NEW YORK NY 10036
Green Ltf Holdings Ii Lp	director, 10 percent owner	11111 SANTA MONICA BLVD., SUITE 2000, LOS ANGELES CA 90025
Simon Property Group Inc /de/	10 percent owner	225 WEST WASHINGTON STREET, INDIANAPOLIS IN 46204-3438
John Kristofer Galashan	director, 10 percent owner	LEONARD, GREEN & PARTNERS, 11111 SANTA MONICA BLVD., SUITE 2000, LOS ANGELES CA 90025
Jss Ltf Holdings Ltd	10 percent owner	MARCY BUILDING, PURCELL ESTATE, P.O. BOX 2416, ROAD TOWN, TORTOLA D8 VG1110
Lifeco Llc	10 percent owner	499 PARK AVENUE, 24TH FLOOR, NEW YORK NY 10022