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Organic Agricultural Co (Organic Agricultural Co) Gross Margin % : 28.28% (As of Dec. 2023)


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What is Organic Agricultural Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Organic Agricultural Co's Gross Profit for the three months ended in Dec. 2023 was $0.08 Mil. Organic Agricultural Co's Revenue for the three months ended in Dec. 2023 was $0.30 Mil. Therefore, Organic Agricultural Co's Gross Margin % for the quarter that ended in Dec. 2023 was 28.28%.

Warning Sign:

Organic Agricultural Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -7%.


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

OGAA' s Gross Margin % Range Over the Past 10 Years
Min: 17.49   Med: 25.76   Max: 40.63
Current: 31.57


During the past 6 years, the highest Gross Margin % of Organic Agricultural Co was 40.63%. The lowest was 17.49%. And the median was 25.76%.

OGAA's Gross Margin % is ranked better than
65.04% of 1808 companies
in the Consumer Packaged Goods industry
Industry Median: 25.085 vs OGAA: 31.57

Organic Agricultural Co had a gross margin of 28.28% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Organic Agricultural Co was -7.00% per year.


Organic Agricultural Co Gross Margin % Historical Data

The historical data trend for Organic Agricultural Co'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.

Organic Agricultural Co Gross Margin % Chart

Organic Agricultural Co Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial 18.88 21.94 30.71 29.58 17.49

Organic Agricultural Co 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.64 26.92 29.89 33.41 28.28

Competitive Comparison of Organic Agricultural Co's Gross Margin %

For the Farm Products subindustry, Organic Agricultural Co'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.


Organic Agricultural Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Organic Agricultural Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Organic Agricultural Co's Gross Margin % falls into.



Organic Agricultural Co Gross Margin % Calculation

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

Organic Agricultural Co's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=0 / 0.223
=(Revenue - Cost of Goods Sold) / Revenue
=(0.223 - 0.184) / 0.223
=17.49 %

Organic Agricultural Co'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 )
=0.1 / 0.297
=(Revenue - Cost of Goods Sold) / Revenue
=(0.297 - 0.213) / 0.297
=28.28 %

* 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.


Organic Agricultural Co  (OTCPK:OGAA) 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

Organic Agricultural Co had a gross margin of 28.28% 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.


Organic Agricultural Co Gross Margin % Related Terms

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


Organic Agricultural Co (Organic Agricultural Co) Business Description

Traded in Other Exchanges
N/A
Address
High and New Technology Industrial Development District, Room G504 G506 G509 G510, Building No. 3, Kejichuangxincheng Chuangxinchuangye Plaza, Heilongjiang Province, Harbin, CHN, 150090
Organic Agricultural Co Ltd is engaged in manufacturing of agricultural products, rice, and other related products. The Company sells paddy and selenium-enriched paddy products, rice and other agricultural products. Geographically, the firm generates a majority of its revenue from the People's Republic of China.

Organic Agricultural Co (Organic Agricultural Co) Headlines

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