HC Group's gross profit for the
six
months ended in Dec. 2023 was HK$152 Mil. HC Group's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was HK$435 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. HC Group's gross profit for the
six
months ended in Dec. 2023 was HK$152 Mil. HC Group's Revenue for the
six
months ended in Dec. 2023 was HK$10,436 Mil. Therefore, HC Group's Gross Margin % for the quarter that ended in Dec. 2023 was 1.46%.
HC Group had a gross margin of 1.46% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
During the past 13 years, the highestGross Margin % of HC Group was 92.51%. The lowest was 2.16%. And the median was 9.14%.
Warning Sign:
HC Group Inc gross margin has been in long-term decline. The average rate of decline per year is -28.5%.
HC Group Gross Profit Historical Data
The historical data trend for HC Group's Gross Profit 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.
For the Information Technology Services subindustry, HC Group's Gross Profit, along with its competitors' market caps and Gross Profit 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.
HC Group's Gross Profit Distribution in the Software Industry
For the Software industry and Technology sector, HC Group's Gross Profit distribution charts can be found below:
* The bar in red indicates where HC Group's Gross Profit falls into.
HC Group Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
HC Group's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was HK$435 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* 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.
HC Group (HKSE:02280) Gross Profit 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
HC Group had a gross margin of 1.46% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
HC Group Gross Profit Related Terms
Thank you for viewing the detailed overview of HC Group's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
HC Group Inc is a holding company based in China involved in e-commerce and related services. The company organizes itself into three segments based on service type. The technology-driven new retail segment provides integration services around the retailing of electronics. The smart industries segment provides a business-to-business trading platform as well as anti-counterfeiting products and supply chain management. The platform & corporate services segment primarily operates the media platform HC360.com and provides data-based marketing services. It generates a vast majority of its revenue from the smart industries segment.
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