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Serco Group (Serco Group) Gross Margin % : 9.74% (As of Dec. 2023)


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What is Serco Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Serco Group's Gross Profit for the six months ended in Dec. 2023 was $296 Mil. Serco Group's Revenue for the six months ended in Dec. 2023 was $3,040 Mil. Therefore, Serco Group's Gross Margin % for the quarter that ended in Dec. 2023 was 9.74%.


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

SCGPY' s Gross Margin % Range Over the Past 10 Years
Min: -1.83   Med: 10.02   Max: 10.88
Current: 10.17


During the past 13 years, the highest Gross Margin % of Serco Group was 10.88%. The lowest was -1.83%. And the median was 10.02%.

SCGPY's Gross Margin % is ranked worse than
91.61% of 989 companies
in the Business Services industry
Industry Median: 34.65 vs SCGPY: 10.17

Serco Group had a gross margin of 9.74% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Serco Group was 1.00% per year.


Serco Group Gross Margin % Historical Data

The historical data trend for Serco 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.

* Premium members only.

Serco Group Gross Margin % Chart

Serco Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.85 9.86 10.58 10.88 10.17

Serco Group 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 % Get a 7-Day Free Trial 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 10.38 11.72 10.11 10.58 9.74

Competitive Comparison of Serco Group's Gross Margin %

For the Specialty Business Services subindustry, Serco 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.


Serco Group's Gross Margin % Distribution in the Business Services Industry

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

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



Serco Group Gross Margin % Calculation

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

Serco Group'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 )
=627.2 / 6169.367
=(Revenue - Cost of Goods Sold) / Revenue
=(6169.367 - 5542.152) / 6169.367
=10.17 %

Serco Group'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 )
=296.1 / 3040.127
=(Revenue - Cost of Goods Sold) / Revenue
=(3040.127 - 2744.051) / 3040.127
=9.74 %

* 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.


Serco Group  (OTCPK:SCGPY) 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

Serco Group had a gross margin of 9.74% 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.


Serco Group Gross Margin % Related Terms

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


Serco Group (Serco Group) Business Description

Traded in Other Exchanges
Address
16 Bartley Wood Business Park, Serco House, Bartley Way, Hook, Hampshire, GBR, RG27 9UY
Serco Group PLC helps governments and public-sector bodies deliver public services. The company generates revenue from four divisions. The U.K. & Europe local and regional government division provides hospital management welfare, business support operations, and defense services in the U.K. and Europe. The Americas division provides professional, defense, technology, and management services to U.S. and Canadian governments. The Asia-Pacific segment provides frontline services, defense, citizen services in Australia, New Zealand, and Hong Kong. The Middle East division provides transport, defense, and health services in the Middle East. The company generates most of its revenue from the U.K. & Europe division.

Serco Group (Serco Group) Headlines