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Kuaishou Technology (HKSE:01024) Gross Margin % : 53.11% (As of Dec. 2023)


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What is Kuaishou Technology Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kuaishou Technology's Gross Profit for the three months ended in Dec. 2023 was HK$18,914 Mil. Kuaishou Technology's Revenue for the three months ended in Dec. 2023 was HK$35,615 Mil. Therefore, Kuaishou Technology's Gross Margin % for the quarter that ended in Dec. 2023 was 53.11%.


The historical rank and industry rank for Kuaishou Technology's Gross Margin % or its related term are showing as below:

HKSE:01024' s Gross Margin % Range Over the Past 10 Years
Min: 28.58   Med: 40.52   Max: 50.58
Current: 50.54


During the past 7 years, the highest Gross Margin % of Kuaishou Technology was 50.58%. The lowest was 28.58%. And the median was 40.52%.

HKSE:01024's Gross Margin % is ranked worse than
60.92% of 522 companies
in the Interactive Media industry
Industry Median: 60.98 vs HKSE:01024: 50.54

Kuaishou Technology had a gross margin of 53.11% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Kuaishou Technology was 10.60% per year.


Kuaishou Technology Gross Margin % Historical Data

The historical data trend for Kuaishou Technology'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.

Kuaishou Technology Gross Margin % Chart

Kuaishou Technology Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 36.05 40.52 41.97 44.73 50.58

Kuaishou Technology Quarterly Data
Dec17 Dec18 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 45.51 46.44 50.22 51.71 53.11

Competitive Comparison of Kuaishou Technology's Gross Margin %

For the Internet Content & Information subindustry, Kuaishou Technology'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.


Kuaishou Technology's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Kuaishou Technology's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kuaishou Technology's Gross Margin % falls into.



Kuaishou Technology Gross Margin % Calculation

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

Kuaishou Technology'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 )
=62773.1 / 124111.09
=(Revenue - Cost of Goods Sold) / Revenue
=(124111.09 - 61338.026) / 124111.09
=50.58 %

Kuaishou Technology's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=18913.6 / 35614.534
=(Revenue - Cost of Goods Sold) / Revenue
=(35614.534 - 16700.91) / 35614.534
=53.11 %

* 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.


Kuaishou Technology  (HKSE:01024) 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

Kuaishou Technology had a gross margin of 53.11% for the quarter that ended in Dec. 2023 => Durable 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.


Kuaishou Technology Gross Margin % Related Terms

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Kuaishou Technology (HKSE:01024) Business Description

Traded in Other Exchanges
Address
No. 6, Shangdi West Road, Building 1, Haidian District, Beijing, CHN, 100085
Kuaishou Technology is a social media platform on which users can share short-form videos that are up to 5 minutes long. The audience engages with the platform by looking at different videos on demand at any time, similar to TikTok. About 52% of revenue is generated from advertising, mainly in the form of targeted ads related to the video content—known as closed-loop ads—but also from outside unrelated brands. Kuaishou also generates livestream revenue by selling virtual gifts to fans that are donated to performers. It also has livestreaming e-commerce, where users purchase products related to the video, generating commission from each transaction. Kuaishou competes mainly with ByteDance's Douyin, as both are short-form video platforms. Tencent owns 19% of Kuaishou.

Kuaishou Technology (HKSE:01024) Headlines

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