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IT Tech Packaging (IT Tech Packaging) Gross Margin % : 1.19% (As of Dec. 2023)


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What is IT Tech Packaging Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. IT Tech Packaging's Gross Profit for the three months ended in Dec. 2023 was $0.25 Mil. IT Tech Packaging's Revenue for the three months ended in Dec. 2023 was $20.97 Mil. Therefore, IT Tech Packaging's Gross Margin % for the quarter that ended in Dec. 2023 was 1.19%.

Warning Sign:

IT Tech Packaging Inc gross margin has been in long-term decline. The average rate of decline per year is -27.5%.


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

ITP' s Gross Margin % Range Over the Past 10 Years
Min: 1.16   Med: 9.24   Max: 20.59
Current: 1.16


During the past 13 years, the highest Gross Margin % of IT Tech Packaging was 20.59%. The lowest was 1.16%. And the median was 9.24%.

ITP's Gross Margin % is ranked worse than
92.58% of 283 companies
in the Forest Products industry
Industry Median: 19.84 vs ITP: 1.16

IT Tech Packaging had a gross margin of 1.19% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for IT Tech Packaging was -27.50% per year.


IT Tech Packaging Gross Margin % Historical Data

The historical data trend for IT Tech Packaging'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.

IT Tech Packaging Gross Margin % Chart

IT Tech Packaging 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 11.63 5.65 6.85 4.74 1.16

IT Tech Packaging Quarterly Data
Mar19 Jun19 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 4.80 -1.40 3.93 -0.97 1.19

Competitive Comparison of IT Tech Packaging's Gross Margin %

For the Paper & Paper Products subindustry, IT Tech Packaging'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.


IT Tech Packaging's Gross Margin % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, IT Tech Packaging's Gross Margin % distribution charts can be found below:

* The bar in red indicates where IT Tech Packaging's Gross Margin % falls into.



IT Tech Packaging Gross Margin % Calculation

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

IT Tech Packaging'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 )
=1 / 86.547
=(Revenue - Cost of Goods Sold) / Revenue
=(86.547 - 85.547) / 86.547
=1.16 %

IT Tech Packaging'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 )
=0.3 / 20.965
=(Revenue - Cost of Goods Sold) / Revenue
=(20.965 - 20.715) / 20.965
=1.19 %

* 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.


IT Tech Packaging  (AMEX:ITP) 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

IT Tech Packaging had a gross margin of 1.19% for the quarter that ended in Dec. 2023 => 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.


IT Tech Packaging Gross Margin % Related Terms

Thank you for viewing the detailed overview of IT Tech Packaging's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


IT Tech Packaging (IT Tech Packaging) Business Description

Traded in Other Exchanges
N/A
Address
Science Park, Juli Road, Xushui District, Hebei Province, Baoding City, CHN, 072550
IT Tech Packaging Inc is a holding company engaged in the business of paper manufacturing in China. The company operates as a producer and distributor of paper products. It involves in production and distribution of three categories of paper products: packing paper (corrugating medium paper), offset printing paper, and tissue paper products. It also produces digital photo paper. Its business is structured into two segments Dongfang Paper and Tengsheng Paper which produces offset printing paper and corrugating medium paper, tissue paper and Baoding Shengde which produces face masks and digital photo paper.
Executives
Zhenyong Liu director, 10 percent owner, officer: Chief Executive Officer C/O ORIENT PAPER, INC., SCIENCE PARK, JULI ROAD, XIUSHUI COUNTY, BAODING CITY,HEBEI PROVINCE F4 072550
Jing Hao officer: Chief Financial Officer SCIENCE PARK, XUSHUI TOWN, BOADING CITY, HEBEI PROVINCE F4 072550
Hon Wai Ku director SUITE 815, 8TH FLOOR, OCEAN CENTRE, HARBOUR CITY, 5 CANTON ROAD, KOWLOON,, HONG KONG F4 0000
Wenbing Wang director 21ST FLOOR, BUILDING B, JIA MING CENTER, NO. 27 DONG SAN HUAN NORTH ROAD, CHAOYANG DISTRICT, BEIJING F4 100020
Winston C Yen officer: Chief Financial Officer 345 S. FIGUEROA STREET, #100, LOS ANGELES CA 90071
Drew Bernstein director C/O BERSTEIN & PINCHUK LLP, SEVEN PENN PLAZA SUITE 830, NEW YORK NY 10001
Zhaofang Wang director ROOM 401, UNIT 4, 20TH FLOOR FANGYUANLI, CHAOYANG DISTRICT, BEIJING F4 100061
Fuzeng Liu director SCIENCE PARK, XUSHUI TOWN, BOADING CITY, HEBEI F4 072550
Xiaodong Liu director SCIENCE PARK, XUSHUI TOWN, BOADING CITY, HEBEI F4 072550
Chen Li director SCIENCE PARK, XUSHUI TOWN, BOADING CITY, HEBEI F4 072550
Dahong Zhou officer: Secretary SCIENCE PARK, XUSHUI TOWN, BOADING CITY, HEBEI F4 072550
Max Time Enterprise Ltd 10 percent owner PO BOX 031-088, SHENNAN ZHONG ROAD, SHENZHEN CITY F4 518031
Hui Ping Cheng director, 10 percent owner, officer: President C/O MY QUOTE ZONE, 6130 ELTON AVENUE, LAS VEGAS NV 89107