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Power Master Energy Co (ROCO:6839) Gross Margin % : 20.29% (As of Dec. 2023)


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What is Power Master Energy Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Power Master Energy Co's Gross Profit for the six months ended in Dec. 2023 was NT$162 Mil. Power Master Energy Co's Revenue for the six months ended in Dec. 2023 was NT$798 Mil. Therefore, Power Master Energy Co's Gross Margin % for the quarter that ended in Dec. 2023 was 20.29%.

Warning Sign:

Power Master Energy Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.8%.


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

ROCO:6839' s Gross Margin % Range Over the Past 10 Years
Min: 9.76   Med: 15.08   Max: 20.73
Current: 14.74


During the past 6 years, the highest Gross Margin % of Power Master Energy Co was 20.73%. The lowest was 9.76%. And the median was 15.08%.

ROCO:6839's Gross Margin % is ranked worse than
77.74% of 975 companies
in the Semiconductors industry
Industry Median: 28.8 vs ROCO:6839: 14.74

Power Master Energy Co had a gross margin of 20.29% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Power Master Energy Co was -9.80% per year.


Power Master Energy Co Gross Margin % Historical Data

The historical data trend for Power Master Energy 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.

Power Master Energy Co Gross Margin % Chart

Power Master Energy Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 17.47 15.42 13.42 9.76 14.74

Power Master Energy Co Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.12 8.33 13.18 11.57 20.29

Competitive Comparison of Power Master Energy Co's Gross Margin %

For the Solar subindustry, Power Master Energy 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.


Power Master Energy Co's Gross Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Power Master Energy Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Power Master Energy Co's Gross Margin % falls into.



Power Master Energy Co Gross Margin % Calculation

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

Power Master Energy Co'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 )
=322.9 / 2190.278
=(Revenue - Cost of Goods Sold) / Revenue
=(2190.278 - 1867.36) / 2190.278
=14.74 %

Power Master Energy 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 )
=161.9 / 798.225
=(Revenue - Cost of Goods Sold) / Revenue
=(798.225 - 636.299) / 798.225
=20.29 %

* 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.


Power Master Energy Co  (ROCO:6839) 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

Power Master Energy Co had a gross margin of 20.29% 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.


Power Master Energy Co Gross Margin % Related Terms

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Power Master Energy Co (ROCO:6839) Business Description

Traded in Other Exchanges
N/A
Address
3, Zhongzheng Road, 8th Floor, No. 651, Xinzhuang District, New Taipei City, TWN
Power Master Energy Co Ltd Formerly Power Master II Holdings Co Ltd is a professional solar power system provider in Taiwan. The business scope is divided into the four main axes of the solar power systems: Engineering Contract EPC, Power Plant Investment, Maintenance Operation Management, and Energy Storage System. It also develops solar photovoltaic components such as modules, brackets, and inverters.

Power Master Energy Co (ROCO:6839) Headlines

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