Gross Margin % is calculated as gross profit divided by its revenue. Humm Group's Gross Profit for the
six
months ended in Dec. 2023 was $20.0 Mil. Humm Group's Revenue for the
six
months ended in Dec. 2023 was $29.4 Mil. Therefore, Humm Group's Gross Margin % for the quarter that ended in Dec. 2023 was 68.11%.
Warning Sign:
Humm Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.1%.
The historical rank and industry rank for Humm Group's Gross Margin % or its related term are showing as below:
HUMGF'
s Gross Margin % Range Over the Past 10 Years
Min: 93.41 Med: 96.04 Max: 99.36
Current: 93.66
During the past 13 years, the highestGross Margin % of Humm Group was 99.36%. The lowest was 93.41%. And the median was 96.04%.
HUMGF's Gross Margin % is ranked better than 93.52% of 355
companies
in the Credit Services industry
Industry Median: 53.89
vs HUMGF: 93.66
Humm Group had a gross margin of 68.11% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Humm Group was -1.10% per year.
Humm Group Gross Margin % Historical Data
The historical data trend for Humm 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.
Competitive Comparison of Humm Group's Gross Margin %
For the Credit Services subindustry, Humm 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.
Humm Group's Gross Margin % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Humm Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Humm Group'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.
Humm Group (OTCPK:HUMGF) 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
Humm Group had a gross margin of 68.11% 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.
Humm Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Humm Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Humm is a diversified finance provider with offerings centered on buy now pay later, or BNPL, credit cards and equipment finance. It facilitates purchases for over 2.7 million customers. Humm operates in Australia, New Zealand, Ireland, and Canada. While it caters for a diverse range of industries, its focus is on financing higher ticket items. Unlike the glut of new BNPL firms, Humm is established with a long operating history. Originally Flexigroup, Humm had a strategic refresh in 2019 where it has now consolidated to around four main brands in ANZ, from 20 before. In its earlier days, Humm focused on Visa and interest-free cards, lay-by, consumer leasing, commercial finance, and other payment solutions to consumers and small businesses.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HUMGF has been successfully added to your 