Gross Margin % is calculated as gross profit divided by its revenue. Hargreaves Lansdown's Gross Profit for the
six
months ended in Dec. 2023 was $337.7 Mil. Hargreaves Lansdown's Revenue for the
six
months ended in Dec. 2023 was $466.1 Mil. Therefore, Hargreaves Lansdown's Gross Margin % for the quarter that ended in Dec. 2023 was 72.46%.
Warning Sign:
Hargreaves Lansdown PLC gross margin has been in long-term decline. The average rate of decline per year is -1.4%.
The historical rank and industry rank for Hargreaves Lansdown's Gross Margin % or its related term are showing as below:
HRGLY'
s Gross Margin % Range Over the Past 10 Years
Min: 61.01 Med: 80.32 Max: 86.34
Current: 79.29
During the past 13 years, the highestGross Margin % of Hargreaves Lansdown was 86.34%. The lowest was 61.01%. And the median was 80.32%.
HRGLY's Gross Margin % is ranked better than 72.93% of 532
companies
in the Asset Management industry
Industry Median: 50.11
vs HRGLY: 79.29
Hargreaves Lansdown had a gross margin of 72.46% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hargreaves Lansdown was -1.40% per year.
Hargreaves Lansdown Gross Margin % Historical Data
The historical data trend for Hargreaves Lansdown'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.
Hargreaves Lansdown Annual Data
Trend
Jun14
Jun15
Jun16
Jun17
Jun18
Jun19
Jun20
Jun21
Jun22
Jun23
Gross Margin %
79.77
81.63
81.01
73.33
80.86
Hargreaves Lansdown Semi-Annual Data
Jun14
Dec14
Jun15
Dec15
Jun16
Dec16
Jun17
Dec17
Jun18
Dec18
Jun19
Dec19
Jun20
Dec20
Jun21
Dec21
Jun22
Dec22
Jun23
Dec23
Gross Margin %
74.68
71.98
75.40
85.82
72.46
Competitive Comparison
For the Asset Management subindustry, Hargreaves Lansdown'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.
Hargreaves Lansdown Gross Margin % Distribution
For the Asset Management industry and Financial Services sector, Hargreaves Lansdown's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hargreaves Lansdown'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.
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
Hargreaves Lansdown had a gross margin of 72.46% 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.
Hargreaves Lansdown Gross Margin % Related Terms
Thank you for viewing the detailed overview of Hargreaves Lansdown's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hargreaves Lansdown (Hargreaves Lansdown) Business Description
Hargreaves Lansdown PLC operates a large direct-to-investor investment service in the United Kingdom built around offerings tailored to client needs. Clients can elect to hold all their funds, stocks, bonds, ETFs, and other financial instruments in a single service with various tax advantages. The company also offers portfolio rebalancing, discretionary services and managed funds, third-party services, savings management, online and apps offerings, and other retirement solutions. The company's clients mostly comprise individual investors and corporate clients. It primarily earns recurring revenue through the administration and management of assets held under its platform, and secondarily earns transactional revenue through stockbroking commissions and initial advisory fees.
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