Dada Nexus (Dada Nexus) Gross Margin % : 36.97% (As of Dec. 2023)

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What is Dada Nexus Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dada Nexus's Gross Profit for the three months ended in Dec. 2023 was $117 Mil. Dada Nexus's Revenue for the three months ended in Dec. 2023 was $316 Mil. Therefore, Dada Nexus's Gross Margin % for the quarter that ended in Dec. 2023 was 36.97%.

The historical rank and industry rank for Dada Nexus's Gross Margin % or its related term are showing as below:

DADA' s Gross Margin % Range Over the Past 10 Years
Min: -30.76 Med: 17.75 Max: 38.69
Current: 37.93

During the past 7 years, the highest Gross Margin % of Dada Nexus was 38.69%. The lowest was -30.76%. And the median was 17.75%.

DADA's Gross Margin % is ranked better than
52.42% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.61 vs DADA: 37.93

Dada Nexus had a gross margin of 36.97% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Dada Nexus was 0.00% per year.

Dada Nexus Gross Margin % Historical Data

The historical data trend for Dada Nexus'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.

* Premium members only.

Dada Nexus Gross Margin % Chart

Dada Nexus Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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8.19

17.75

25.15

38.69

37.84

Dada Nexus Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															41.27	44.20	38.92	31.77	36.97

Competitive Comparison of Dada Nexus's Gross Margin %

For the Internet Retail subindustry, Dada Nexus'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.

Dada Nexus's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Dada Nexus's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Dada Nexus's Gross Margin % falls into.

Dada Nexus Gross Margin % Calculation

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

Dada Nexus'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 )
	=	556.8	/	1471.422
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1471.422 - 914.588)	/	1471.422
	=	37.84 %

Dada Nexus'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 )
	=	116.7	/	315.621
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(315.621 - 198.923)	/	315.621
	=	36.97 %

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.

Dada Nexus (NAS:DADA) 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

Dada Nexus had a gross margin of 36.97% for the quarter that ended in Dec. 2023 => 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.

Dada Nexus Gross Margin % Related Terms

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Dada Nexus (Dada Nexus) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Dada Nexus Ltd (NAS:DADA) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

D0A:Germany

Address

No.1088 Yangshupu Road, 22nd Floor, Oriental Fisherman’s Wharf, Yangpu District, Shanghai, CHN, 200082

Website

https://ir.imdada.cn

Dada Nexus is a leading crowdsourced delivery service in China. The company has two core businesses, Dada Now, which is an on-demand delivery platform that provides last-mile and intracity services; and JD Daojia, or JDDJ, which is an online on-demand retail platform that connects consumers to merchants with its delivery capabilities. As of 2022, Dada Now accounted for 34% of revenue while JDDJ accounted for the rest. JDDJ and Dada Nexus merged in 2016, where JD.com received 47.4% ownership of the merged entity in exchange for its JDDJ business. As of June 2023, JD.com and Walmart Inc own 53.9% and 9.3% of Dada Nexus, respectively. Dada Nexus competes with other logistics companies such as SF Intra-City, with Didi in its delivery business, and with Meituan in its on-demand retail segment.