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Arrail Group (HKSE:06639) Gross Margin % : 22.89% (As of Sep. 2023)


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What is Arrail Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Arrail Group's Gross Profit for the six months ended in Sep. 2023 was HK$218 Mil. Arrail Group's Revenue for the six months ended in Sep. 2023 was HK$951 Mil. Therefore, Arrail Group's Gross Margin % for the quarter that ended in Sep. 2023 was 22.89%.


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

HKSE:06639' s Gross Margin % Range Over the Past 10 Years
Min: 10.13   Med: 16.77   Max: 24.05
Current: 17.63


During the past 5 years, the highest Gross Margin % of Arrail Group was 24.05%. The lowest was 10.13%. And the median was 16.77%.

HKSE:06639's Gross Margin % is ranked worse than
85.41% of 610 companies
in the Healthcare Providers & Services industry
Industry Median: 41.535 vs HKSE:06639: 17.63

Arrail Group had a gross margin of 22.89% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Arrail Group was 0.00% per year.


Arrail Group Gross Margin % Historical Data

The historical data trend for Arrail 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.

* Premium members only.

Arrail Group Gross Margin % Chart

Arrail Group Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
15.16 10.13 24.05 20.73 16.77

Arrail Group Semi-Annual Data
Mar19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Gross Margin % Get a 7-Day Free Trial Premium Member Only 22.28 19.06 21.67 11.38 22.89

Competitive Comparison of Arrail Group's Gross Margin %

For the Medical Care Facilities subindustry, Arrail 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.


Arrail Group's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Arrail Group's Gross Margin % distribution charts can be found below:

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



Arrail Group Gross Margin % Calculation

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

Arrail Group's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=281.4 / 1678.583
=(Revenue - Cost of Goods Sold) / Revenue
=(1678.583 - 1397.156) / 1678.583
=16.77 %

Arrail Group's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=217.6 / 950.585
=(Revenue - Cost of Goods Sold) / Revenue
=(950.585 - 732.987) / 950.585
=22.89 %

* 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.


Arrail Group  (HKSE:06639) 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

Arrail Group had a gross margin of 22.89% for the quarter that ended in Sep. 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.


Arrail Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Arrail Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Arrail Group (HKSE:06639) Business Description

Traded in Other Exchanges
Address
No. 18, Ziyue Road, 6th Floor, Building 11, Chaolai Science Park, Chaoyang District, Beijing, CHN
Arrail Group Ltd is a dental services provider in the premium private dental service market in China.
Executives
Zou Qifang
The Goldman Sachs Group, Inc.
Arrail Sunshine Holdings Limited 2301 Trustee
Kastle Limited 2301 Trustee
Total Success Investment Ltd. 2101 Beneficial owner
Zhang Zheng 2201 Interest of corporation controlled by you
Young Roger K C 2201 Interest of corporation controlled by you
Empire Choice International Limited 2501 Other
Buckley John Paul 2201 Interest of corporation controlled by you
19 Growth Capital Fund Lp 2102 Investment manager
19 Growth Capital Fund Gp Inc. 2102 Investment manager
Rise Day Holdings Limited
United Culture Assets Limited
Qiming Gp Ii, L.p. 2201 Interest of corporation controlled by you
Kpcb China Associates Ltd 2201 Interest of corporation controlled by you

Arrail Group (HKSE:06639) Headlines

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