Dirui Industrial Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.5%.
The historical rank and industry rank for Dirui Industrial Co's Gross Margin % or its related term are showing as below:
SZSE:300396'
s Gross Margin % Range Over the Past 10 Years
Min: 44.88 Med: 57.33 Max: 65.11
Current: 44.88
During the past 13 years, the highestGross Margin % of Dirui Industrial Co was 65.11%. The lowest was 44.88%. And the median was 57.33%.
SZSE:300396's Gross Margin % is ranked worse than 52.86% of 210
companies
in the Medical Diagnostics & Research industry
Industry Median: 46.095
vs SZSE:300396: 44.88
Dirui Industrial Co had a gross margin of 36.40% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Dirui Industrial Co was -5.50% per year.
Dirui Industrial Co Gross Margin % Historical Data
The historical data trend for Dirui Industrial 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.
Competitive Comparison of Dirui Industrial Co's Gross Margin %
For the Diagnostics & Research subindustry, Dirui Industrial 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.
Dirui Industrial Co's Gross Margin % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Dirui Industrial Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dirui Industrial Co'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.
Dirui Industrial Co (SZSE:300396) 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
Dirui Industrial Co had a gross margin of 36.40% for the quarter that ended in Mar. 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.
Dirui Industrial Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Dirui Industrial Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Dirui Industrial Co (SZSE:300396) Business Description
Dirui Industrial Co Ltd is a supplier of laboratory solutions. It is engaged in research and development, manufacturing, and sales of diagnostic products including laboratory equipment and clinical diagnostic reagents. Dirui's collective product portfolio represents complete laboratory solutions for the in-vitro diagnostic areas of hematology, clinical chemistry, and urinalysis. The company offers chemistry, hematology, urine, and vaginal infection analyzers. It also provides reagents and consumables, such as chemical reagents and detergents, chemistry quality controls/calibrators, ISE reagents, hematology analyzer reagents, urine sediment analyzer reagents, urinalysis controls and strips, and automatic urine analyzer detergents.
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