GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Li Ning Co Ltd (HKSE:02331) » Definitions » Profitability Rank

Li Ning Co (HKSE:02331) Profitability Rank : 8 (As of Dec. 2023)


View and export this data going back to 2004. Start your Free Trial

What is Li Ning Co Profitability Rank?

Li Ning Co has the Profitability Rank of 8. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Li Ning Co's Operating Margin % for the quarter that ended in Dec. 2023 was 7.31%. As of today, Li Ning Co's Piotroski F-Score is 6.


Competitive Comparison of Li Ning Co's Profitability Rank

For the Leisure subindustry, Li Ning Co's Profitability Rank, along with its competitors' market caps and Profitability Rank 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.


Li Ning Co's Profitability Rank Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Li Ning Co's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Li Ning Co's Profitability Rank falls into.



Li Ning Co Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Li Ning Co has the Profitability Rank of 8. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Li Ning Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1085.472 / 14853.019
=7.31 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Li Ning Co has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Li Ning Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


Li Ning Co Profitability Rank Related Terms

Thank you for viewing the detailed overview of Li Ning Co's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Li Ning Co (HKSE:02331) Business Description

Traded in Other Exchanges
Address
No. 8 Xing Guang 5th Street, Opto-Mechatronics Industrial Park, Zhongguancun Science and Technology Area, Tongzhou District, Beijing, CHN, 101111
Established in 1989, Li Ning is one of the largest sportswear companies in China. Headquartered in Beijing, Li Ning mainly sells professional and leisure footwear and apparel under the Li Ning brand. Despite having a single-brand strategy, Li Ning launched multiple sub-brands (such as China Li Ning and Li Ning 1990) to appeal to different demographics. As of the end of 2021, the company had 7,137 stores in China, of which 1,232 were directly operated, and 5,905 were franchised.

Li Ning Co (HKSE:02331) Headlines

No Headlines