Computime Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for Computime Group's Gross Margin % or its related term are showing as below:
HKSE:00320'
s Gross Margin % Range Over the Past 10 Years
Min: 11.52 Med: 12.9 Max: 14.66
Current: 13.19
During the past 13 years, the highestGross Margin % of Computime Group was 14.66%. The lowest was 11.52%. And the median was 12.90%.
HKSE:00320's Gross Margin % is ranked worse than 77.06% of 2437
companies
in the Hardware industry
Industry Median: 24.47
vs HKSE:00320: 13.19
Computime Group had a gross margin of 15.02% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Computime Group was -1.90% per year.
Computime Group Gross Margin % Historical Data
The historical data trend for Computime 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.
Competitive Comparison of Computime Group's Gross Margin %
For the Consumer Electronics subindustry, Computime 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.
Computime Group's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Computime Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Computime Group'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.
Computime Group (HKSE:00320) 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
Computime Group had a gross margin of 15.02% for the quarter that ended in Sep. 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.
Computime Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Computime Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Computime Group Ltd is engaged in research and development, design, manufacture, trading, and distribution of electronic control products. The company operates in business segments that include the Control Solutions Business provides design, engineering, technology, and manufacturing services, including Original Equipment Manufacturer (OEM) and Original Design Manufacturer; and the Branded Business segment, which offers smart home, energy management, and home solutions to professional installers, property developers, utility companies, and wholesaler. The company generates a vast majority of its revenue from the Control solutions segment. Geographically, the operations are spread throughout America, Europe, Oceania, and Asia.
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