Gross Margin % is calculated as gross profit divided by its revenue. ShiftPixy's Gross Profit for the
three
months ended in Feb. 2024 was $0.22 Mil. ShiftPixy's Revenue for the
three
months ended in Feb. 2024 was $3.81 Mil. Therefore, ShiftPixy's Gross Margin % for the quarter that ended in Feb. 2024 was 5.82%.
Warning Sign:
ShiftPixy Inc gross margin has been in long-term decline. The average rate of decline per year is -28.3%.
The historical rank and industry rank for ShiftPixy's Gross Margin % or its related term are showing as below:
PIXY'
s Gross Margin % Range Over the Past 10 Years
Min: 1.37 Med: 13.41 Max: 18.3
Current: 3.63
During the past 9 years, the highestGross Margin % of ShiftPixy was 18.30%. The lowest was 1.37%. And the median was 13.41%.
PIXY's Gross Margin % is ranked worse than 96.86% of 988
companies
in the Business Services industry
Industry Median: 34.315
vs PIXY: 3.63
ShiftPixy had a gross margin of 5.82% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for ShiftPixy was -28.30% per year.
ShiftPixy Gross Margin % Historical Data
The historical data trend for ShiftPixy'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 ShiftPixy's Gross Margin %
For the Staffing & Employment Services subindustry, ShiftPixy'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.
ShiftPixy's Gross Margin % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, ShiftPixy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ShiftPixy'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.
ShiftPixy (NAS:PIXY) 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
ShiftPixy had a gross margin of 5.82% for the quarter that ended in Feb. 2024 => 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.
ShiftPixy Gross Margin % Related Terms
Thank you for viewing the detailed overview of ShiftPixy's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
ShiftPixy Inc provides a disruptive human capital management platform, revolutionizing employment in the Gig Economy by delivering a next-gen mobile engagement technology to help businesses with shift-based employees navigate regulatory mandates, minimize administrative burdens and connect with a ready-for-hire workforce. ShiftPixy adds a needed layer for addressing compliance and continued demands for equitable employment practices in the growing economy. Geographically it operates in California and Washington and drives key revenue from Californian religion. Its primary operating business metric is gross billings, consisting of the clients' fully burdened payroll costs.
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