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Shandong Zhangqiu Blower Co (SZSE:002598) Gross Margin % : 29.08% (As of Mar. 2024)


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What is Shandong Zhangqiu Blower Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shandong Zhangqiu Blower Co's Gross Profit for the three months ended in Mar. 2024 was ¥133 Mil. Shandong Zhangqiu Blower Co's Revenue for the three months ended in Mar. 2024 was ¥458 Mil. Therefore, Shandong Zhangqiu Blower Co's Gross Margin % for the quarter that ended in Mar. 2024 was 29.08%.

Warning Sign:

Shandong Zhangqiu Blower Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


The historical rank and industry rank for Shandong Zhangqiu Blower Co's Gross Margin % or its related term are showing as below:

SZSE:002598' s Gross Margin % Range Over the Past 10 Years
Min: 28.6   Med: 31.95   Max: 37.83
Current: 29.13


During the past 13 years, the highest Gross Margin % of Shandong Zhangqiu Blower Co was 37.83%. The lowest was 28.60%. And the median was 31.95%.

SZSE:002598's Gross Margin % is ranked better than
56.94% of 2926 companies
in the Industrial Products industry
Industry Median: 26.54 vs SZSE:002598: 29.13

Shandong Zhangqiu Blower Co had a gross margin of 29.08% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Shandong Zhangqiu Blower Co was -2.50% per year.


Shandong Zhangqiu Blower Co Gross Margin % Historical Data

The historical data trend for Shandong Zhangqiu Blower Co'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.

Shandong Zhangqiu Blower Co Gross Margin % Chart

Shandong Zhangqiu Blower Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.73 30.95 28.79 28.72 28.60

Shandong Zhangqiu Blower Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.03 33.99 42.27 15.57 29.08

Competitive Comparison of Shandong Zhangqiu Blower Co's Gross Margin %

For the Specialty Industrial Machinery subindustry, Shandong Zhangqiu Blower Co'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.


Shandong Zhangqiu Blower Co's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Shandong Zhangqiu Blower Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shandong Zhangqiu Blower Co's Gross Margin % falls into.



Shandong Zhangqiu Blower Co Gross Margin % Calculation

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

Shandong Zhangqiu Blower Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=573.4 / 2004.61
=(Revenue - Cost of Goods Sold) / Revenue
=(2004.61 - 1431.234) / 2004.61
=28.60 %

Shandong Zhangqiu Blower Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=133.1 / 457.642
=(Revenue - Cost of Goods Sold) / Revenue
=(457.642 - 324.561) / 457.642
=29.08 %

* 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.


Shandong Zhangqiu Blower Co  (SZSE:002598) 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

Shandong Zhangqiu Blower Co had a gross margin of 29.08% for the quarter that ended in Mar. 2024 => 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.


Shandong Zhangqiu Blower Co Gross Margin % Related Terms

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Shandong Zhangqiu Blower Co (SZSE:002598) Business Description

Traded in Other Exchanges
N/A
Address
Mingshui Economic Development Zone, Shandong Province, Zhangqiu City, CHN, 250200
Shandong Zhangqiu Blower Co Ltd operates in general equipment manufacturing industry. The products of the company include roots blowers, multi stage centrifugal blowers, and fans.
Executives
Liu Xin Quan Supervisors
Niu Yu Sheng Directors, executives
Fang Shu Peng Directors, executives
Fang Run Gang Director
Xu Chun Dong Executives
Wang Chong Pu Directors, executives
Gao Ke Supervisors
Zhang Ying Qi Directors, executives
Gao Yu Xin Directors, executives
Xi Ji Xiang Executives
Bai Ze Kui Executives
Chen Chao Secretary Dong
Liu Shi Hua Director
Zhu Wen Bo Director
Shen Neng Yao Executives

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