Gross Margin % is calculated as gross profit divided by its revenue. UTime's Gross Profit for the
six
months ended in Sep. 2023 was $0.54 Mil. UTime's Revenue for the
six
months ended in Sep. 2023 was $11.50 Mil. Therefore, UTime's Gross Margin % for the quarter that ended in Sep. 2023 was 4.70%.
The historical rank and industry rank for UTime's Gross Margin % or its related term are showing as below:
WTO'
s Gross Margin % Range Over the Past 10 Years
Min: 5 Med: 7.71 Max: 14.99
Current: 14
During the past 7 years, the highestGross Margin % of UTime was 14.99%. The lowest was 5.00%. And the median was 7.71%.
WTO's Gross Margin % is ranked worse than 75.3% of 2437
companies
in the Hardware industry
Industry Median: 24.45
vs WTO: 14.00
UTime had a gross margin of 4.70% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for UTime was 2.30% per year.
UTime Gross Margin % Historical Data
The historical data trend for UTime'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.
For the Consumer Electronics subindustry, UTime'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.
UTime's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, UTime's Gross Margin % distribution charts can be found below:
* The bar in red indicates where UTime's Gross Margin % falls into.
* 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.
UTime (NAS:WTO) 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
UTime had a gross margin of 4.70% for the quarter that ended in Sep. 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.
UTime Gross Margin % Related Terms
Thank you for viewing the detailed overview of UTime's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
UTime Ltd is engaged in the design, development, production, sales and brand operation of mobile phones, accessories and related consumer electronics. It also provides Electronics Manufacturing Services (EMS), including Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) services, for renowned brands. The company operates in China and its products are sold globally, including India, Brazil, the United States, and other emerging markets in South Asia and Africa as well as Europe. It has two in-house brands, UTime, known as its middle-to-high end label and targets middle class consumers from emerging markets; and Do, as its low- to mid-end brand, is positioned to the grassroots consumers and price-sensitive consumers in emerging markets.
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