Regional Express Holdings (ASX:REX) Gross Margin % : 55.32% (As of Dec. 2023)

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What is Regional Express Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Regional Express Holdings's Gross Profit for the six months ended in Dec. 2023 was A$191.7 Mil. Regional Express Holdings's Revenue for the six months ended in Dec. 2023 was A$346.6 Mil. Therefore, Regional Express Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 55.32%.

Warning Sign:

Regional Express Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.5%.

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

ASX:REX' s Gross Margin % Range Over the Past 10 Years
Min: 49.36 Med: 67.28 Max: 70.28
Current: 55.51

During the past 13 years, the highest Gross Margin % of Regional Express Holdings was 70.28%. The lowest was 49.36%. And the median was 67.28%.

ASX:REX's Gross Margin % is ranked better than
90.93% of 948 companies
in the Transportation industry
Industry Median: 20.035 vs ASX:REX: 55.51

Regional Express Holdings had a gross margin of 55.32% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Regional Express Holdings was -6.50% per year.

Regional Express Holdings Gross Margin % Historical Data

The historical data trend for Regional Express 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.

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Regional Express Holdings Gross Margin % Chart

Regional Express Holdings Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Gross Margin %

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68.09

66.91

56.76

49.36

54.90

Regional Express Holdings 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															52.08	48.19	54.15	55.74	55.32

Competitive Comparison of Regional Express Holdings's Gross Margin %

For the Airlines subindustry, Regional Express 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.

Regional Express Holdings's Gross Margin % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Regional Express Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Regional Express Holdings's Gross Margin % falls into.

Regional Express Holdings Gross Margin % Calculation

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

Regional Express Holdings's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )	=	Gross Profit (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	345	/	628.409
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(628.409 - 283.409)	/	628.409
	=	54.90 %

Regional Express 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 )
	=	191.7	/	346.612
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(346.612 - 154.863)	/	346.612
	=	55.32 %

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.

Regional Express Holdings (ASX:REX) 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

Regional Express Holdings had a gross margin of 55.32% 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.

Regional Express Holdings Gross Margin % Related Terms

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Regional Express Holdings (ASX:REX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Regional Express Holdings Ltd (ASX:REX) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

81-83 Baxter Road, Mascot, Sydney, NSW, AUS, 2020

Website

https://www.rex.com.au

Regional Express Holdings Ltd is an Australian-based airline company. The company is engaged in the provision of air services for the transportation of passengers and freight. Its operating segment includes Regular public transport, Charter and other, and Training. The company generates maximum revenue from the Regular public transport segment. Some of its services include Web Check-in; Print Invoices; Safe Hand Baggage; Travel Insurance and others.