51 Talk Online Education Group (51 Talk Online Education Group) Gross Margin % : 75.00% (As of Dec. 2023)

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What is 51 Talk Online Education Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. 51 Talk Online Education Group's Gross Profit for the three months ended in Dec. 2023 was $5.60 Mil. 51 Talk Online Education Group's Revenue for the three months ended in Dec. 2023 was $7.47 Mil. Therefore, 51 Talk Online Education Group's Gross Margin % for the quarter that ended in Dec. 2023 was 75.00%.

The historical rank and industry rank for 51 Talk Online Education Group's Gross Margin % or its related term are showing as below:

COE' s Gross Margin % Range Over the Past 10 Years
Min: 57.46 Med: 64.82 Max: 83.5
Current: 76.68

During the past 11 years, the highest Gross Margin % of 51 Talk Online Education Group was 83.50%. The lowest was 57.46%. And the median was 64.82%.

COE's Gross Margin % is ranked better than
88.26% of 247 companies
in the Education industry
Industry Median: 47.88 vs COE: 76.68

51 Talk Online Education Group had a gross margin of 75.00% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for 51 Talk Online Education Group was 0.00% per year.

51 Talk Online Education Group Gross Margin % Historical Data

The historical data trend for 51 Talk Online Education Group'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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51 Talk Online Education Group Gross Margin % Chart

51 Talk Online Education Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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70.25

83.50

78.77

76.68

51 Talk Online Education Group Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															78.97	77.63	78.37	76.26	75.00

Competitive Comparison of 51 Talk Online Education Group's Gross Margin %

For the Education & Training Services subindustry, 51 Talk Online Education Group'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.

51 Talk Online Education Group's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, 51 Talk Online Education Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where 51 Talk Online Education Group's Gross Margin % falls into.

51 Talk Online Education Group Gross Margin % Calculation

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

51 Talk Online Education Group'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 )
	=	20.8	/	27.111
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(27.111 - 6.322)	/	27.111
	=	76.68 %

51 Talk Online Education Group'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 )
	=	5.6	/	7.471
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7.471 - 1.868)	/	7.471
	=	75.00 %

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.

51 Talk Online Education Group (AMEX:COE) 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

51 Talk Online Education Group had a gross margin of 75.00% 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.

51 Talk Online Education Group Gross Margin % Related Terms

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51 Talk Online Education Group (51 Talk Online Education Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » 51 Talk Online Education Group (AMEX:COE) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

C4G0:Germany

Address

24 Raffles Place, No. 17-04 Clifford Centre, Singapore, CHN, 048621

Website

https://www.51talk.com

51 Talk Online Education Group is an online education platform in China, with core expertise in English education. The company's mission is to make quality education accessible and affordable. It's online and mobile education platforms enable students across China to take live interactive English lessons with overseas foreign teachers, on demand.