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Gross Margin % is calculated as gross profit divided by its revenue. Herc Holdings's Gross Profit for the three months ended in Sep. 2024 was $385 Mil. Herc Holdings's Revenue for the three months ended in Sep. 2024 was $965 Mil. Therefore, Herc Holdings's Gross Margin % for the quarter that ended in Sep. 2024 was 39.90%.
The historical rank and industry rank for Herc Holdings's Gross Margin % or its related term are showing as below:
During the past 11 years, the highest Gross Margin % of Herc Holdings was 38.87%. The lowest was 22.60%. And the median was 26.77%.
Herc Holdings had a gross margin of 39.90% for the quarter that ended in Sep. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Herc Holdings was 9.00% per year.
The historical data trend for Herc 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.
Herc Holdings Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial | 27.13 | 29.56 | 36.47 | 38.87 | 37.26 |
Herc Holdings Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
Gross Margin % | Get a 7-Day Free Trial | 38.22 | 38.94 | 35.45 | 36.08 | 39.90 |
For the Rental & Leasing Services subindustry, Herc 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.
For the Business Services industry and Industrials sector, Herc Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Herc Holdings's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Herc 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 ) |
= | 1223 | / | 3282 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (3282 - 2059) | / | 3282 | |
= | 37.26 % |
Herc Holdings's Gross Margin for the quarter that ended in Sep. 2024 is calculated as
Gross Margin % (Q: Sep. 2024 ) | = | Gross Profit (Q: Sep. 2024 ) | / | Revenue (Q: Sep. 2024 ) |
= | 385 | / | 965 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (965 - 580) | / | 965 | |
= | 39.90 % |
* 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.
Herc Holdings (NYSE:HRI) 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
Herc Holdings had a gross margin of 39.90% for the quarter that ended in Sep. 2024 => Competition eroding margins
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.
Thank you for viewing the detailed overview of Herc Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Aaron Birnbaum | officer: SVP & Chief Operating Officer | 27500 RIVERVIEW CENTER BLVD., BONITA SPRINGS FL 34134 |
Tamir Peres | officer: SVP&Chief Information Officer | 27500 RIVERVIEW CENTER BLVD., BONITA SPRINGS FL 34134 |
Lawrence Harris Silber | director, officer: President & CEO | 7 FOX HOLLOW COURT, FLEMINGTON NJ 08822 |
Christian J Cunningham | officer: SVP & Chief HR Officer | C/O HERC HOLDINGS INC., 27500 RIVERVIEW CENTER BLVD., BONITA SPRINGS FL 34134 |
Mark Alan Schumacher | officer: VP, CAO and Controller | 27500 RIVERVIEW CENTER BLVD, BONITA SPRINGS FL 34134 |
Carl C Icahn | 10 percent owner | C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160 |
Mark Irion | officer: SVP & CFO | C/O NEFF CORPORATION, SUITE 400, 3750 N.W. 87TH AVENUE, MIAMI FL 33178 |
Hunter Clark Gary | director | C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160 |
Steven D Miller | director | 16690 COLLINS AVENUE, PH, SUNNY ISLE BEACH FL 33160 |
Rakesh Sachdev | director | 3050 SPRUCE STREET, ST LOUIS MO 63103 |
James H Browning | director | 3760 JARDIN, HOUSTON TX 77005 |
Andrew Teno | director | C/O FIR TREE INC., 55 WEST 46TH STREET, 29TH FLOOR, NEW YORK NY 10036 |
Shari L Burgess | director | |
Andrew Langham | director | C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160 |
Herbert L Henkel | director | C/O INGERSOLL-RAND COMPANY LIMITED, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645 |
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