Chen Lin Education Group Holdings (HKSE:01593) Gross Margin % : 30.79% (As of Feb. 2024)

Chen Lin Education Group Holdings Gross Margin % Chart

Chen Lin Education Group Holdings Semi-Annual Data
	Dec16	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Feb22	Aug22	Feb23	Aug23	Feb24
Gross Margin %	Get a 7-Day Free Trial								36.73	33.95	39.39	42.11	30.79

Competitive Comparison of Chen Lin Education Group Holdings's Gross Margin %

For the Education & Training Services subindustry, Chen Lin Education Group 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.

Chen Lin Education Group Holdings's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Chen Lin Education Group Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Chen Lin Education Group Holdings's Gross Margin % falls into.

Chen Lin Education Group Holdings Gross Margin % Calculation

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

Chen Lin Education Group Holdings's Gross Margin for the fiscal year that ended in Aug. 2023 is calculated as

Chen Lin Education Group Holdings's Gross Margin for the quarter that ended in Feb. 2024 is calculated as

* 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.

Chen Lin Education Group Holdings  (HKSE:01593) 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

Chen Lin Education Group Holdings had a gross margin of 30.79% for the quarter that ended in Feb. 2024 => 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.

Chen Lin Education Group Holdings Gross Margin % Related Terms

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Chen Lin Education Group Holdings (HKSE:01593) Business Description