OK Zimbabwe (XZIM:OKZ.ZW) Gross Margin % : 16.60% (As of Sep. 2023)

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What is OK Zimbabwe Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. OK Zimbabwe's Gross Profit for the six months ended in Sep. 2023 was ZWL120,793 Mil. OK Zimbabwe's Revenue for the six months ended in Sep. 2023 was ZWL727,874 Mil. Therefore, OK Zimbabwe's Gross Margin % for the quarter that ended in Sep. 2023 was 16.60%.

Warning Sign:

OK Zimbabwe Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.6%.

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

XZIM:OKZ.ZW' s Gross Margin % Range Over the Past 10 Years
Min: 11.19 Med: 16.85 Max: 20.96
Current: 19.76

During the past 9 years, the highest Gross Margin % of OK Zimbabwe was 20.96%. The lowest was 11.19%. And the median was 16.85%.

XZIM:OKZ.ZW's Gross Margin % is ranked worse than
80% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.61 vs XZIM:OKZ.ZW: 19.76

OK Zimbabwe had a gross margin of 16.60% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for OK Zimbabwe was -9.60% per year.

OK Zimbabwe Gross Margin % Historical Data

The historical data trend for OK Zimbabwe'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.

OK Zimbabwe Gross Margin % Chart

OK Zimbabwe Annual Data

Trend

Mar09

Mar11

Mar12

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

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20.96

19.35

13.49

16.02

11.19

OK Zimbabwe Semi-Annual Data
	Mar11	Sep11	Mar12	Sep12	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %	Get a 7-Day Free Trial											15.88	16.12	8.81	3.62	16.60

Competitive Comparison of OK Zimbabwe's Gross Margin %

For the Department Stores subindustry, OK Zimbabwe'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.

OK Zimbabwe's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, OK Zimbabwe's Gross Margin % distribution charts can be found below:

* The bar in red indicates where OK Zimbabwe's Gross Margin % falls into.

OK Zimbabwe Gross Margin % Calculation

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

OK Zimbabwe'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 )
	=	34830.8	/	311284.479
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(311284.479 - 276453.695)	/	311284.479
	=	11.19 %

OK Zimbabwe'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 )
	=	120792.7	/	727873.698
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(727873.698 - 607081.03)	/	727873.698
	=	16.60 %

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.

OK Zimbabwe (XZIM:OKZ.ZW) 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

OK Zimbabwe had a gross margin of 16.60% 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.

OK Zimbabwe Gross Margin % Related Terms

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OK Zimbabwe (XZIM:OKZ.ZW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » OK Zimbabwe Ltd (XZIM:OKZ.ZW) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

OK House, 7 Ramon Road, P.O. Box 3081, Graniteside, Harare, ZWE

Website

https://www.okziminvestor.com

OK Zimbabwe Ltd is a supermarket retailer in Zimbabwe. The company's business covers three categories including groceries, basic clothing and textiles, and houseware products. Its groceries category includes dry groceries, butchery, delicatessen, takeaway, bakery, provisions and fruit, and vegetable sections. The company trades its product under brand names, including OK Stores, Bon Marche Stores, and OKmart.

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