PDD Holdings (PDD Holdings) Gross Margin % : 60.53% (As of Dec. 2023)

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What is PDD Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. PDD Holdings's Gross Profit for the three months ended in Dec. 2023 was $7,535 Mil. PDD Holdings's Revenue for the three months ended in Dec. 2023 was $12,448 Mil. Therefore, PDD Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 60.53%.

Warning Sign:

PDD Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -3.4%.

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

PDD' s Gross Margin % Range Over the Past 10 Years
Min: -14.46 Med: 66.92 Max: 78.97
Current: 63.01

During the past 8 years, the highest Gross Margin % of PDD Holdings was 78.97%. The lowest was -14.46%. And the median was 66.92%.

PDD's Gross Margin % is ranked better than
89.32% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.74 vs PDD: 63.01

PDD Holdings had a gross margin of 60.53% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for PDD Holdings was -3.40% per year.

PDD Holdings Gross Margin % Historical Data

The historical data trend for PDD Holdings'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.

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PDD Holdings Gross Margin % Chart

PDD Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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78.97

67.59

66.24

75.90

62.96

PDD Holdings 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															77.58	70.44	64.25	61.03	60.53

Competitive Comparison of PDD Holdings's Gross Margin %

For the Internet Retail subindustry, PDD Holdings'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.

PDD Holdings's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, PDD Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where PDD Holdings's Gross Margin % falls into.

PDD Holdings Gross Margin % Calculation

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

PDD Holdings'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 )
	=	21836.3	/	34682.391
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(34682.391 - 12846.08)	/	34682.391
	=	62.96 %

PDD Holdings'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 )
	=	7535.2	/	12447.976
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12447.976 - 4912.786)	/	12447.976
	=	60.53 %

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.

PDD Holdings (NAS:PDD) 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

PDD Holdings had a gross margin of 60.53% 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.

PDD Holdings Gross Margin % Related Terms

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PDD Holdings (PDD Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » PDD Holdings Inc (NAS:PDD) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

PDD:Mexico 0A2S:UK 9PDA:Germany 9PDA:Germany P1DD34:Brazil

Address

First Floor, 25 St Stephen’s Green, Dublin 2,, Dublin 2, IRL, D02 XF99

Website

https://www.pddholdings.com

PDD Holdings (Nasdaq: PDD) is a multinational commerce group that owns and operates a portfolio of businesses. PDD Holdings aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from the increased productivity and new opportunities. PDD Holdings has built a network of sourcing, logistics, and fulfilment capabilities, that support its underlying businesses.