The historical rank and industry rank for GOME Retail Holdings's Gross Margin % or its related term are showing as below:
HKSE:00493'
s Gross Margin % Range Over the Past 10 Years
Min: 10.31 Med: 14.82 Max: 26.93
Current: 26.93
During the past 13 years, the highestGross Margin % of GOME Retail Holdings was 26.93%. The lowest was 10.31%. And the median was 14.82%.
HKSE:00493's Gross Margin % is ranked worse than 68.52% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 36.675
vs HKSE:00493: 26.93
GOME Retail Holdings had a gross margin of 126.74% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for GOME Retail Holdings was 5.50% per year.
GOME Retail Holdings Gross Margin % Historical Data
The historical data trend for GOME Retail Holdings'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 GOME Retail Holdings's Gross Margin %
For the Specialty Retail subindustry, GOME Retail Holdings'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.
GOME Retail Holdings's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, GOME Retail Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GOME Retail Holdings'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.
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
GOME Retail Holdings had a gross margin of 126.74% 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.
GOME Retail Holdings Gross Margin % Related Terms
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GOME Retail Holdings (HKSE:00493) Business Description
GOME Retail Holdings Ltd is an electrical appliance retailer operating in China and Hong Kong. Its products include audio and video electrical appliances, refrigerating and washing devices, telecommunications devices, and other electronic and technological devices. By geographical segment, the company divides its sales into Chinese regions - Beijing, Guangzhou, Shenzhen, Xi'an, Jinan, Chengdu, Shanghai, and Others. By product categories, revenue is split into Air conditioners, Refrigerators and Washing machines, Telecommunication, Small white appliances, Computer and Digital, and New business.
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