Far East Horizon Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.9%.
The historical rank and industry rank for Far East Horizon's Gross Margin % or its related term are showing as below:
HKSE:03360'
s Gross Margin % Range Over the Past 10 Years
Min: 44.69 Med: 54.06 Max: 59.55
Current: 44.69
During the past 13 years, the highestGross Margin % of Far East Horizon was 59.55%. The lowest was 44.69%. And the median was 54.06%.
HKSE:03360's Gross Margin % is ranked worse than 61.69% of 355
companies
in the Credit Services industry
Industry Median: 53.89
vs HKSE:03360: 44.69
Far East Horizon had a gross margin of 43.43% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Far East Horizon was -3.90% per year.
Far East Horizon Gross Margin % Historical Data
The historical data trend for Far East Horizon'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 Far East Horizon's Gross Margin %
For the Credit Services subindustry, Far East Horizon'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.
Far East Horizon's Gross Margin % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Far East Horizon's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Far East Horizon'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.
Far East Horizon (HKSE:03360) 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
Far East Horizon had a gross margin of 43.43% 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.
Far East Horizon Gross Margin % Related Terms
Thank you for viewing the detailed overview of Far East Horizon's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Far East Horizon (HKSE:03360) Business Description
Far East Horizon Ltd is a specialty finance provider. Its services entail integrated finance, investment, trade, advisory and engineering services in healthcare, infrastructure construction, electronic information, packaging, transportation and other sectors. The company operates in two segments. The Financial, lease, and advisory business is the highest revenue-generating segment for the company that deals with the provision of direct finance leasing, sale-leaseback, factoring, entrusted loans, and advisory services. The industrial operation and management business segment deals with the import and export trade and domestic trade of medical equipment, the provision of trade agency services, medical engineering, hospital and healthcare management, and ship brokerage services.
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