Oriental Culture Holding (Oriental Culture Holding) Gross Margin % : 72.47% (As of Dec. 2023)

View and export this data going back to 2020. Start your Free Trial

What is Oriental Culture Holding Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Oriental Culture Holding's Gross Profit for the six months ended in Dec. 2023 was $0.57 Mil. Oriental Culture Holding's Revenue for the six months ended in Dec. 2023 was $0.78 Mil. Therefore, Oriental Culture Holding's Gross Margin % for the quarter that ended in Dec. 2023 was 72.47%.

Warning Sign:

Oriental Culture Holding Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.1%.

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

OCG' s Gross Margin % Range Over the Past 10 Years
Min: 74.3 Med: 90.38 Max: 94.41
Current: 74.3

During the past 6 years, the highest Gross Margin % of Oriental Culture Holding was 94.41%. The lowest was 74.30%. And the median was 90.38%.

OCG's Gross Margin % is ranked better than
95.89% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.51 vs OCG: 74.30

Oriental Culture Holding had a gross margin of 72.47% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Oriental Culture Holding was -2.10% per year.

Oriental Culture Holding Gross Margin % Historical Data

The historical data trend for Oriental Culture Holding'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.

Oriental Culture Holding Gross Margin % Chart

Oriental Culture Holding Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

90.12

84.85

93.55

94.41

74.30

Oriental Culture Holding Semi-Annual Data
	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial							92.17	93.68	110.44	76.10	72.47

Competitive Comparison of Oriental Culture Holding's Gross Margin %

For the Internet Retail subindustry, Oriental Culture Holding'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.

Oriental Culture Holding's Gross Margin % Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Oriental Culture Holding's Gross Margin % falls into.

Oriental Culture Holding Gross Margin % Calculation

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

Oriental Culture Holding'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 )
	=	1.2	/	1.58
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1.58 - 0.406)	/	1.58
	=	74.30 %

Oriental Culture Holding'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 )
	=	0.6	/	0.781
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(0.781 - 0.215)	/	0.781
	=	72.47 %

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.

Oriental Culture Holding (NAS:OCG) 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

Oriental Culture Holding had a gross margin of 72.47% 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.

Oriental Culture Holding Gross Margin % Related Terms

Thank you for viewing the detailed overview of Oriental Culture Holding's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Oriental Culture Holding (Oriental Culture Holding) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Oriental Culture Holding Ltd (NAS:OCG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

198-200 Queen’s Road Central, Room 1402, Richmake Commercial Building, Hong Kong, HKG

Website

http://www.ocgroup.hk

Oriental Culture Holding Ltd is an online provider of collectibles and artwork e-commerce services. The company also offers online and offline integrated marketing, storage, and technical maintenance service to customers in China and Hong Kong. It operates through one segment namely, e-commerce of artwork trading. It generates revenue through listing service fees, transaction fees, and other revenues collected from traders.