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Vats Liquor Chain Store Management JSC (SZSE:300755) Gross Margin % : 10.48% (As of Mar. 2024)


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What is Vats Liquor Chain Store Management JSC Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Vats Liquor Chain Store Management JSC's Gross Profit for the three months ended in Mar. 2024 was ¥433 Mil. Vats Liquor Chain Store Management JSC's Revenue for the three months ended in Mar. 2024 was ¥4,133 Mil. Therefore, Vats Liquor Chain Store Management JSC's Gross Margin % for the quarter that ended in Mar. 2024 was 10.48%.

Warning Sign:

Vats Liquor Chain Store Management JSC Ltd gross margin has been in long-term decline. The average rate of decline per year is -12.3%.


The historical rank and industry rank for Vats Liquor Chain Store Management JSC's Gross Margin % or its related term are showing as below:

SZSE:300755' s Gross Margin % Range Over the Past 10 Years
Min: 10.75   Med: 20.48   Max: 23.27
Current: 10.81


During the past 13 years, the highest Gross Margin % of Vats Liquor Chain Store Management JSC was 23.27%. The lowest was 10.75%. And the median was 20.48%.

SZSE:300755's Gross Margin % is ranked worse than
94.74% of 209 companies
in the Beverages - Alcoholic industry
Industry Median: 39.88 vs SZSE:300755: 10.81

Vats Liquor Chain Store Management JSC had a gross margin of 10.48% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Vats Liquor Chain Store Management JSC was -12.30% per year.


Vats Liquor Chain Store Management JSC Gross Margin % Historical Data

The historical data trend for Vats Liquor Chain Store Management JSC'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.

Vats Liquor Chain Store Management JSC Gross Margin % Chart

Vats Liquor Chain Store Management JSC Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.39 19.07 20.96 14.03 10.75

Vats Liquor Chain Store Management JSC Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 10.27 12.91 10.43 9.64 10.48

Competitive Comparison of Vats Liquor Chain Store Management JSC's Gross Margin %

For the Beverages - Wineries & Distilleries subindustry, Vats Liquor Chain Store Management JSC'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.


Vats Liquor Chain Store Management JSC's Gross Margin % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Vats Liquor Chain Store Management JSC's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Vats Liquor Chain Store Management JSC's Gross Margin % falls into.



Vats Liquor Chain Store Management JSC Gross Margin % Calculation

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

Vats Liquor Chain Store Management JSC'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 )
=1087.6 / 10121.033
=(Revenue - Cost of Goods Sold) / Revenue
=(10121.033 - 9033.446) / 10121.033
=10.75 %

Vats Liquor Chain Store Management JSC's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=433.1 / 4133.205
=(Revenue - Cost of Goods Sold) / Revenue
=(4133.205 - 3700.112) / 4133.205
=10.48 %

* 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.


Vats Liquor Chain Store Management JSC  (SZSE:300755) 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

Vats Liquor Chain Store Management JSC had a gross margin of 10.48% 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.


Vats Liquor Chain Store Management JSC Gross Margin % Related Terms

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Vats Liquor Chain Store Management JSC (SZSE:300755) Business Description

Traded in Other Exchanges
N/A
Address
Central District of Shangri-La Economic Development Zone, Yunnan Province, Diqing Tibetan Autonomous Prefecture, CHN, 100062
Vats Liquor Chain Store Management JSC Ltd is engaged in distribution of wines such as feitian maotai, maotai aged wine and ordinary wuliangye.
Executives
Yang Wu Yong Directors, executives
Yang Qiang Executives
Peng Yu Qing Director
Liang Fang Bin Directors, executives
Li Wei Directors, executives
Zhang Jing Supervisors
Lei Guang Yong Independent director
Huang Fei Executives
Yan Tao Director

Vats Liquor Chain Store Management JSC (SZSE:300755) Headlines

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