Gross Margin % is calculated as gross profit divided by its revenue. Greenhill's Gross Profit for the
three
months ended in Sep. 2023 was $-17.4 Mil. Greenhill's Revenue for the
three
months ended in Sep. 2023 was $30.7 Mil. Therefore, Greenhill's Gross Margin % for the quarter that ended in Sep. 2023 was -56.79%.
Warning Sign:
Greenhill & Co Inc gross margin has been in long-term decline. The average rate of decline per year is -2.3%.
The historical rank and industry rank for Greenhill's Gross Margin % or its related term are showing as below:
GHL'
s Gross Margin % Range Over the Past 10 Years
Min: 22.69 Med: 42.14 Max: 46.39
Current: 22.69
During the past 13 years, the highestGross Margin % of Greenhill was 46.39%. The lowest was 22.69%. And the median was 42.14%.
GHL's Gross Margin % is not ranked
in the Capital Markets industry.
Industry Median: 48.91
vs GHL: 22.69
Greenhill had a gross margin of -56.79% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Greenhill was -2.30% per year.
Greenhill Gross Margin % Historical Data
The historical data trend for Greenhill'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.
Competitive Comparison of Greenhill's Gross Margin %
For the Capital Markets subindustry, Greenhill'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.
Greenhill's Gross Margin % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Greenhill's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Greenhill'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.
Greenhill (NYSE:GHL) 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
Greenhill had a gross margin of -56.79% for the quarter that ended in Sep. 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.
Greenhill Gross Margin % Related Terms
Thank you for viewing the detailed overview of Greenhill's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Greenhill & Co Inc is an independent investment bank that provides financial and strategic advice on significant domestic and cross-border mergers and acquisitions, divestitures, restructurings, financings, capital raising, and other transactions to a diverse client base, including corporations, partnerships, institutions, and governments globally. The company derives revenues from both corporate advisory services related to mergers and acquisitions, financings and restructurings and capital advisory services related to sales or capital raises pertaining to alternative assets.
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