Tandem Group (LSE:TND) Gross Margin % : 27.83% (As of Dec. 2023)

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What is Tandem Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tandem Group's Gross Profit for the six months ended in Dec. 2023 was £3.48 Mil. Tandem Group's Revenue for the six months ended in Dec. 2023 was £12.49 Mil. Therefore, Tandem Group's Gross Margin % for the quarter that ended in Dec. 2023 was 27.83%.

Warning Sign:

Tandem Group 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 Tandem Group's Gross Margin % or its related term are showing as below:

LSE:TND' s Gross Margin % Range Over the Past 10 Years
Min: 25.98 Med: 29.5 Max: 31.52
Current: 26.98

During the past 13 years, the highest Gross Margin % of Tandem Group was 31.52%. The lowest was 25.98%. And the median was 29.50%.

LSE:TND's Gross Margin % is ranked worse than
75.78% of 768 companies
in the Travel & Leisure industry
Industry Median: 43.21 vs LSE:TND: 26.98

Tandem Group had a gross margin of 27.83% for the quarter that ended in Dec. 2023 => Competition eroding margins

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

Tandem Group Gross Margin % Historical Data

The historical data trend for Tandem 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.

* Premium members only.

Tandem Group Gross Margin % Chart

Tandem Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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30.35

29.73

29.45

29.22

26.98

Tandem Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															27.64	30.98	27.56	25.88	27.83

Competitive Comparison of Tandem Group's Gross Margin %

For the Leisure subindustry, Tandem 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.

Tandem Group's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Tandem Group's Gross Margin % distribution charts can be found below:

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

Tandem Group Gross Margin % Calculation

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

Tandem Group'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 )
	=	6	/	22.242
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(22.242 - 16.242)	/	22.242
	=	26.98 %

Tandem Group'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 )
	=	3.5	/	12.49
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12.49 - 9.014)	/	12.49
	=	27.83 %

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.

Tandem Group (LSE:TND) 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

Tandem Group had a gross margin of 27.83% for the quarter that ended in Dec. 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.

Tandem Group Gross Margin % Related Terms

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Tandem Group (LSE:TND) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Tandem Group PLC (LSE:TND) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

35 Tameside Drive, Castle Bromwich, Birmingham, GBR, B35 7AG

Website

https://www.tandemgroupplc.co.uk

Tandem Group PLC is a designer, developer, distributor, and retailer of sports, leisure, and mobility products. Its Products include bicycles and accessories, football training equipment, garden and camping, homewares and household appliances, mobility, outdoor play, snooker, pool and table sports, wheeled toys, and golf equipment which are sold under various brands including Boss, Exile, Scorpion, Carpzone, Kickmaster, Windbar, Airwave, Disney, Shopkins, and Trolls. It has four segments Toys, Sports & Leisure, eMobility, Bicycles, Home & Garden, and the majority of the revenue comes from Toys, Sports & Leisure.

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