Readboy Education Holding Co (HKSE:02385) Gross Margin % : 18.76% (As of Dec. 2023)

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What is Readboy Education Holding Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Readboy Education Holding Co's Gross Profit for the six months ended in Dec. 2023 was HK$47.9 Mil. Readboy Education Holding Co's Revenue for the six months ended in Dec. 2023 was HK$255.3 Mil. Therefore, Readboy Education Holding Co's Gross Margin % for the quarter that ended in Dec. 2023 was 18.76%.

The historical rank and industry rank for Readboy Education Holding Co's Gross Margin % or its related term are showing as below:

HKSE:02385' s Gross Margin % Range Over the Past 10 Years
Min: 20.8 Med: 25.72 Max: 27.48
Current: 25.72

During the past 5 years, the highest Gross Margin % of Readboy Education Holding Co was 27.48%. The lowest was 20.80%. And the median was 25.72%.

HKSE:02385's Gross Margin % is ranked worse than
86.64% of 247 companies
in the Education industry
Industry Median: 47.9 vs HKSE:02385: 25.72

Readboy Education Holding Co had a gross margin of 18.76% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Readboy Education Holding Co was 0.00% per year.

Readboy Education Holding Co Gross Margin % Historical Data

The historical data trend for Readboy Education Holding Co'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.

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Readboy Education Holding Co Gross Margin % Chart

Readboy Education Holding Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

26.03

27.48

20.80

22.18

25.72

Readboy Education Holding Co Semi-Annual Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial			17.71	25.60	19.60	38.61	18.76

Competitive Comparison of Readboy Education Holding Co's Gross Margin %

For the Education & Training Services subindustry, Readboy Education Holding Co'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.

Readboy Education Holding Co's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Readboy Education Holding Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Readboy Education Holding Co's Gross Margin % falls into.

Readboy Education Holding Co Gross Margin % Calculation

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

Readboy Education Holding Co'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 )
	=	101.1	/	393.074
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(393.074 - 291.986)	/	393.074
	=	25.72 %

Readboy Education Holding Co'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 )
	=	47.9	/	255.324
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(255.324 - 207.423)	/	255.324
	=	18.76 %

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.

Readboy Education Holding Co (HKSE:02385) 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

Readboy Education Holding Co had a gross margin of 18.76% for the quarter that ended in Dec. 2023 => 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.

Readboy Education Holding Co Gross Margin % Related Terms

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Readboy Education Holding Co (HKSE:02385) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Readboy Education Holding Co Ltd (HKSE:02385) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 38, Changyi Road, Wuguishan, Guangdong Province, Zhongshan, CHN

Website

https://www.readboy.com

Readboy Education Holding Co Ltd is an investment holding company engaged in the production and sale of personal student tablets, smart classroom solutions, wearable products, other products, and advertisement and content licensing in the People's Republic of China. The company has five operating segments; Production and sale of personal student tablets, Production and sale of smart classroom solutions, Production and sale of wearable products, Production and sale of other products, and Advertisement and content licensing. It derives a majority of its revenue from the production and sale of personal student tablets in the People's Republic of China.

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