XD's gross profit for the
six
months ended in Dec. 2023 was HK$1,128 Mil. XD's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was HK$2,262 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. XD's gross profit for the
six
months ended in Dec. 2023 was HK$1,128 Mil. XD's Revenue for the
six
months ended in Dec. 2023 was HK$1,789 Mil. Therefore, XD's Gross Margin % for the quarter that ended in Dec. 2023 was 63.02%.
XD had a gross margin of 63.02% for the quarter that ended in Dec. 2023 => Durable competitive advantage
During the past 8 years, the highestGross Margin % of XD was 62.43%. The lowest was 44.51%. And the median was 53.65%.
Warning Sign:
XD Inc gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
XD Gross Profit Historical Data
The historical data trend for XD's Gross Profit 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.
For the Electronic Gaming & Multimedia subindustry, XD's Gross Profit, along with its competitors' market caps and Gross Profit 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.
XD's Gross Profit Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, XD's Gross Profit distribution charts can be found below:
* The bar in red indicates where XD's Gross Profit falls into.
XD Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
XD's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$2,262 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
XD's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as
* 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.
XD (HKSE:02400) Gross Profit 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
XD had a gross margin of 63.02% for the quarter that ended in Dec. 2023 => Durable competitive advantage
XD Gross Profit Related Terms
Thank you for viewing the detailed overview of XD's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
XD Inc is engaged in the development, operation, publishing, and distribution of mobile and web games and the provision of information services in China and overseas. It also operates TapTap, a game community and platform in China. It has two operating segments. The game segment, which is the key revenue driver, offers game publishing and operating services on its own and via other distribution channels. Revenues from this segment are derived from game publishing and operating services. The information service segment offers online marketing services to game developers, game publishers, or their agents. Revenues from this segment are derived from performance-based online marketing services.
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