Gotion High-tech Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -12.9%.
The historical rank and industry rank for Gotion High-tech Co's Gross Margin % or its related term are showing as below:
SZSE:002074'
s Gross Margin % Range Over the Past 10 Years
Min: 16.69 Med: 30.87 Max: 51.61
Current: 16.69
During the past 13 years, the highestGross Margin % of Gotion High-tech Co was 51.61%. The lowest was 16.69%. And the median was 30.87%.
SZSE:002074's Gross Margin % is ranked worse than 77.37% of 2938
companies
in the Industrial Products industry
Industry Median: 26.39
vs SZSE:002074: 16.69
Gotion High-tech Co had a gross margin of 17.86% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Gotion High-tech Co was -12.90% per year.
Gotion High-tech Co Gross Margin % Historical Data
The historical data trend for Gotion High-tech 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 Gotion High-tech Co's Gross Margin %
For the Electrical Equipment & Parts subindustry, Gotion High-tech 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.
Gotion High-tech Co's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gotion High-tech Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gotion High-tech 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.
Gotion High-tech Co (SZSE:002074) 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
Gotion High-tech Co had a gross margin of 17.86% for the quarter that ended in Mar. 2024 => No sustainable 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.
Gotion High-tech Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Gotion High-tech Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gotion High-tech Co (SZSE:002074) Business Description
Established in 2006 in Hefei, Anhui province, Gotion High-tech, is one of the first enterprises engaged in research, production, and sales of rechargeable lithium-ion batteries for NEVs in China. Its main products include lithium iron phosphate materials and batteries, ternary batteries, battery packs, and energy storage batteries. The products are widely used in new energy passenger vehicles, commercial vehicles, energy storage power plants, communication base stations, and so on. Gotion ranked eighth among global EV battery companies with 3% market share in 2022 in terms of installed capacity, and fourth in China with 5% market share. The company is 25%-owned by Volkswagen Group with Chairman Li Zhen holding around 7%.
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