TAL Education Group (TAL Education Group) Gross Margin % : 53.63% (As of Nov. 2023)

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What is TAL Education Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. TAL Education Group's Gross Profit for the three months ended in Nov. 2023 was $200 Mil. TAL Education Group's Revenue for the three months ended in Nov. 2023 was $374 Mil. Therefore, TAL Education Group's Gross Margin % for the quarter that ended in Nov. 2023 was 53.63%.

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

TAL' s Gross Margin % Range Over the Past 10 Years
Min: 48.55 Med: 52.47 Max: 57.21
Current: 54.15

During the past 13 years, the highest Gross Margin % of TAL Education Group was 57.21%. The lowest was 48.55%. And the median was 52.47%.

TAL's Gross Margin % is ranked better than
63.05% of 249 companies
in the Education industry
Industry Median: 48.33 vs TAL: 54.15

TAL Education Group had a gross margin of 53.63% for the quarter that ended in Nov. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for TAL Education Group was 1.50% per year.

TAL Education Group Gross Margin % Historical Data

The historical data trend for TAL Education Group'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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TAL Education Group Gross Margin % Chart

TAL Education Group Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Gross Margin %

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54.57

55.14

54.43

49.82

57.21

TAL Education Group Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Gross Margin %	Get a 7-Day Free Trial															55.75	52.52	49.35	58.88	53.63

Competitive Comparison of TAL Education Group's Gross Margin %

For the Education & Training Services subindustry, TAL Education Group'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.

TAL Education Group's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, TAL Education Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where TAL Education Group's Gross Margin % falls into.

TAL Education Group Gross Margin % Calculation

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

TAL Education Group's Gross Margin for the fiscal year that ended in Feb. 2023 is calculated as

Gross Margin % (A: Feb. 2023 )	=	Gross Profit (A: Feb. 2023 )	/	Revenue (A: Feb. 2023 )
	=	583.4	/	1019.772
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1019.772 - 436.358)	/	1019.772
	=	57.21 %

TAL Education Group's Gross Margin for the quarter that ended in Nov. 2023 is calculated as

Gross Margin % (Q: Nov. 2023 )	=	Gross Profit (Q: Nov. 2023 )	/	Revenue (Q: Nov. 2023 )
	=	200.3	/	373.506
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(373.506 - 173.18)	/	373.506
	=	53.63 %

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.

TAL Education Group (NYSE:TAL) 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

TAL Education Group had a gross margin of 53.63% for the quarter that ended in Nov. 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.

TAL Education Group Gross Margin % Related Terms

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TAL Education Group (TAL Education Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » TAL Education Group (NYSE:TAL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TAL:Mexico 0A2X:UK IZZ:Germany IZZ:Germany T1AL34:Brazil

Address

Xiaoying West Street, 5th Floor, Tower B, Heying Center, Haidian District, Beijing, CHN, 100085

Website

http://www.100tal.com

TAL Education Group is a smart learning solutions provider in China. K-9 academic afterschool tutoring used to account for the majority of TAL's revenue before the regulatory changes in 2021 that imposed a nonprofit requirement on the business. After spinning off its K-9 academic afterschool tutoring business, TAL realigned its focus toward enrichment learning, content solutions, and learning technology solutions.