Poly Culture Group Corporation Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Poly Culture Group's Gross Margin % or its related term are showing as below:
FRA:0P4'
s Gross Margin % Range Over the Past 10 Years
Min: 31.29 Med: 35.1 Max: 49.41
Current: 31.29
During the past 11 years, the highestGross Margin % of Poly Culture Group was 49.41%. The lowest was 31.29%. And the median was 35.10%.
FRA:0P4's Gross Margin % is not ranked
in the Media - Diversified industry.
Industry Median: 38.36
vs FRA:0P4: 31.29
Poly Culture Group had a gross margin of 27.01% for the quarter that ended in Jun. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Poly Culture Group was -1.50% per year.
Poly Culture Group Gross Margin % Historical Data
The historical data trend for Poly Culture 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.
Competitive Comparison of Poly Culture Group's Gross Margin %
For the Entertainment subindustry, Poly Culture 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.
Poly Culture Group's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Poly Culture Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Poly Culture Group'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.
Poly Culture Group (FRA:0P4) 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
Poly Culture Group had a gross margin of 27.01% for the quarter that ended in Jun. 2023 => Competition eroding margins
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.
Poly Culture Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Poly Culture Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Poly Culture Group Corporation Ltd is engaged in art business and auction, performance and theater management, and cinema investment and management. Its Art business and the auction include buy and sell antiques, modern and contemporary calligraphy and painting, ancient calligraphy and painting, oil painting and sculpture, and other cultural relics and artwork. It also provides artwork investment consultation and other services. Performance and theatre management, which is the key revenue driver, includes daily management of the theatre, the arrangement of performances, leases of theatres and theatre design consultation services. Cinema Investment and management includes cinema construction and cinema operation. It earns the majority of its revenue in Mainland China.
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