Midea Group Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.2%.
The historical rank and industry rank for Midea Group Co's Gross Margin % or its related term are showing as below:
SZSE:000333'
s Gross Margin % Range Over the Past 10 Years
Min: 22.93 Med: 25.69 Max: 29.11
Current: 27.65
During the past 13 years, the highestGross Margin % of Midea Group Co was 29.11%. The lowest was 22.93%. And the median was 25.69%.
SZSE:000333's Gross Margin % is ranked worse than 51.6% of 407
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 28.3
vs SZSE:000333: 27.65
Midea Group Co had a gross margin of 27.58% for the quarter that ended in Mar. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Midea Group Co was -2.20% per year.
Midea Group Co Gross Margin % Historical Data
The historical data trend for Midea Group 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.
Competitive Comparison of Midea Group Co's Gross Margin %
For the Furnishings, Fixtures & Appliances subindustry, Midea Group 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.
Midea Group Co's Gross Margin % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Midea Group Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Midea Group Co'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.
Midea Group Co (SZSE:000333) 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
Midea Group Co had a gross margin of 27.58% for the quarter that ended in Mar. 2024 => 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.
Midea Group Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Midea Group Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Midea Group Co., Ltd. is one of the largest household appliance manufacturers in China, producing air conditioners, refrigerators, washing machines and small household appliances. It is consistently ranked as one of the top three players in China by retail sales in most of the home appliance products. The firm is also involved in industrial automation systems through its 100% stake in Kuka, a leading global player in the industry based in Germany. Heating, ventilation, and air-conditioning, or HVAC, products accounted for 44% of Midea's total revenue in 2022, followed by other consumer appliances (36%) and robotics and automation systems (9%). In addition, more than 40% of the group's sales is ex-China.
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