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Lords Group Trading (LSE:LORD) Gross Margin % : 19.56% (As of Dec. 2023)


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What is Lords Group Trading Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lords Group Trading's Gross Profit for the six months ended in Dec. 2023 was £47.0 Mil. Lords Group Trading's Revenue for the six months ended in Dec. 2023 was £240.0 Mil. Therefore, Lords Group Trading's Gross Margin % for the quarter that ended in Dec. 2023 was 19.56%.

Warning Sign:

Lords Group Trading PLC gross margin has been in long-term decline. The average rate of decline per year is -6.4%.


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

LSE:LORD' s Gross Margin % Range Over the Past 10 Years
Min: 16.41   Med: 19.85   Max: 27.41
Current: 19.97


During the past 6 years, the highest Gross Margin % of Lords Group Trading was 27.41%. The lowest was 16.41%. And the median was 19.85%.

LSE:LORD's Gross Margin % is ranked worse than
62.24% of 143 companies
in the Industrial Distribution industry
Industry Median: 22.61 vs LSE:LORD: 19.97

Lords Group Trading had a gross margin of 19.56% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lords Group Trading was -6.40% per year.


Lords Group Trading Gross Margin % Historical Data

The historical data trend for Lords Group Trading'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.

Lords Group Trading Gross Margin % Chart

Lords Group Trading Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 25.69 16.41 17.26 19.73 19.97

Lords Group Trading Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.11 19.31 20.11 20.40 19.56

Competitive Comparison of Lords Group Trading's Gross Margin %

For the Industrial Distribution subindustry, Lords Group Trading'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.


Lords Group Trading's Gross Margin % Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Lords Group Trading's Gross Margin % distribution charts can be found below:

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



Lords Group Trading Gross Margin % Calculation

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

Lords Group Trading'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 )
=92.4 / 462.601
=(Revenue - Cost of Goods Sold) / Revenue
=(462.601 - 370.238) / 462.601
=19.97 %

Lords Group Trading'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 )
=47 / 240.049
=(Revenue - Cost of Goods Sold) / Revenue
=(240.049 - 193.085) / 240.049
=19.56 %

* 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.


Lords Group Trading  (LSE:LORD) 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

Lords Group Trading had a gross margin of 19.56% 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.


Lords Group Trading Gross Margin % Related Terms

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Lords Group Trading (LSE:LORD) Business Description

Traded in Other Exchanges
Address
12-15 Hanger Green, 2nd Floor, London, GBR, W5 3EL
Lords Group Trading PLC is a distributor of building, plumbing, heating, and DIY goods. The group principally sells to local tradesmen, small to medium-sized plumbing and heating merchants, construction companies and retails directly to the public. Its operating two divisions include Merchanting: supplies building materials and DIY goods through its network of merchant businesses and online platform capabilities; Heating and Plumbing: a distributor in the UK of heating and plumbing products to a UK network of independent merchants, installers and the general public. It focused on the growing Repairs, Maintenance, and Improvement (RMI) market, and construction market. Its main clients are local tradesmen, hardware stores, plumbing and heating merchants and construction companies.

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