Gotion High-tech Co's gross profit for the
three
months ended in Mar. 2024 was ¥1,341 Mil. Gotion High-tech Co's gross profit for the trailing twelve months (TTM) ended in Mar. 2024 was ¥5,330 Mil.
Gotion High-tech Co had a gross margin of 17.86% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
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%.
Warning Sign:
Gotion High-tech Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -12.9%.
Gotion High-tech Co Gross Profit Historical Data
The historical data trend for Gotion High-tech Co'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.
Competitive Comparison of Gotion High-tech Co's Gross Profit
For the Electrical Equipment & Parts subindustry, Gotion High-tech Co'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.
Gotion High-tech Co's Gross Profit Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gotion High-tech Co's Gross Profit distribution charts can be found below:
* The bar in red indicates where Gotion High-tech Co's Gross Profit falls into.
Gotion High-tech Co Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Gotion High-tech Co'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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥5,330 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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 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
Gotion High-tech Co had a gross margin of 17.86% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
Gotion High-tech Co Gross Profit Related Terms
Thank you for viewing the detailed overview of Gotion High-tech Co's Gross Profit 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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