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Tavistock Investments (LSE:TAVI) Gross Margin % : 37.61% (As of Sep. 2023)


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What is Tavistock Investments Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tavistock Investments's Gross Profit for the six months ended in Sep. 2023 was £7.73 Mil. Tavistock Investments's Revenue for the six months ended in Sep. 2023 was £20.56 Mil. Therefore, Tavistock Investments's Gross Margin % for the quarter that ended in Sep. 2023 was 37.61%.

Warning Sign:

Tavistock Investments PLC gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


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

LSE:TAVI' s Gross Margin % Range Over the Past 10 Years
Min: 19.01   Med: 36.09   Max: 47.69
Current: 35.54


During the past 13 years, the highest Gross Margin % of Tavistock Investments was 47.69%. The lowest was 19.01%. And the median was 36.09%.

LSE:TAVI's Gross Margin % is ranked worse than
61.09% of 604 companies
in the Capital Markets industry
Industry Median: 48.655 vs LSE:TAVI: 35.54

Tavistock Investments had a gross margin of 37.61% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Tavistock Investments was -2.50% per year.


Tavistock Investments Gross Margin % Historical Data

The historical data trend for Tavistock Investments'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.

Tavistock Investments Gross Margin % Chart

Tavistock Investments Annual Data
Trend Dec12 Dec13 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 40.76 40.81 42.37 35.14 33.09

Tavistock Investments Semi-Annual Data
Dec13 Jun14 Dec14 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.66 31.62 33.21 32.97 37.61

Competitive Comparison of Tavistock Investments's Gross Margin %

For the Capital Markets subindustry, Tavistock Investments'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.


Tavistock Investments's Gross Margin % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Tavistock Investments's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Tavistock Investments's Gross Margin % falls into.



Tavistock Investments Gross Margin % Calculation

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

Tavistock Investments's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=11.2 / 33.954
=(Revenue - Cost of Goods Sold) / Revenue
=(33.954 - 22.717) / 33.954
=33.09 %

Tavistock Investments's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=7.7 / 20.56
=(Revenue - Cost of Goods Sold) / Revenue
=(20.56 - 12.827) / 20.56
=37.61 %

* 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.


Tavistock Investments  (LSE:TAVI) 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

Tavistock Investments had a gross margin of 37.61% for the quarter that ended in Sep. 2023 => 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.


Tavistock Investments Gross Margin % Related Terms

Thank you for viewing the detailed overview of Tavistock Investments's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Tavistock Investments (LSE:TAVI) Business Description

Traded in Other Exchanges
N/A
Address
Lyndhurst Road, 1 Queen's Square, Ascot Business Park, Ascot, Berkshire, GBR, SL5 9FE
Tavistock Investments PLC is a UK-based company that is engaged in the provision of support services to a network of independent financial advisories (IFAs) and the provision of investment management services. The company's operating segments include Investment Management and Advisory Business. It generates maximum revenue from the Advisory Business segment. Revenue generated by the company mainly consists of fees and commissions received by providing services.

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