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China Automotive Systems (China Automotive Systems) Gross Margin % : 21.78% (As of Dec. 2023)


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What is China Automotive Systems Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China Automotive Systems's Gross Profit for the three months ended in Dec. 2023 was $34.7 Mil. China Automotive Systems's Revenue for the three months ended in Dec. 2023 was $159.2 Mil. Therefore, China Automotive Systems's Gross Margin % for the quarter that ended in Dec. 2023 was 21.78%.


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

CAAS' s Gross Margin % Range Over the Past 10 Years
Min: 13.18   Med: 16.36   Max: 18.74
Current: 18


During the past 13 years, the highest Gross Margin % of China Automotive Systems was 18.74%. The lowest was 13.18%. And the median was 16.36%.

CAAS's Gross Margin % is ranked worse than
54.78% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs CAAS: 18.00

China Automotive Systems had a gross margin of 21.78% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for China Automotive Systems was 5.50% per year.


China Automotive Systems Gross Margin % Historical Data

The historical data trend for China Automotive Systems'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.

China Automotive Systems Gross Margin % Chart

China Automotive Systems 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 14.68 13.25 14.47 15.75 18.00

China Automotive Systems Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 19.44 15.20 16.53 18.00 21.78

Competitive Comparison of China Automotive Systems's Gross Margin %

For the Auto Parts subindustry, China Automotive Systems'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.


China Automotive Systems's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China Automotive Systems's Gross Margin % falls into.



China Automotive Systems Gross Margin % Calculation

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

China Automotive Systems'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 )
=103.8 / 576.354
=(Revenue - Cost of Goods Sold) / Revenue
=(576.354 - 472.603) / 576.354
=18.00 %

China Automotive Systems's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=34.7 / 159.16
=(Revenue - Cost of Goods Sold) / Revenue
=(159.16 - 124.502) / 159.16
=21.78 %

* 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.


China Automotive Systems  (NAS:CAAS) 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

China Automotive Systems had a gross margin of 21.78% for the quarter that ended in Dec. 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.


China Automotive Systems Gross Margin % Related Terms

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


China Automotive Systems (China Automotive Systems) Business Description

Traded in Other Exchanges
Address
No. 1 Henglong Road, Yu Qiao Development Zone, Shashi District, Hubei Province, Jing Zhou, CHN, 434000
China Automotive Systems Inc is a holding company. The firm through its subsidiary is a supplier of power steering systems and components to China's automotive industry. Its product offering encompasses a full range of auto parts incorporated into steering systems for both passenger automobiles and commercial vehicles. The company offers four separate series, more than 310 models of power steering including rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps, and steering hoses. Geographically, it derives a majority of revenue from China.
Executives
Jie Li officer: Chief Financial Officer HENGLONG BLDG., # 1 GUANSHAN 1ST ROAD, EAST LAKE HI-TECH ZONE, WUHAN F4 430073
Tong Kooi Teo director 08-05 GOODWOOD RESIDENCE, 261 BUKIT TIMAH ROAD, SINGAPORE U0 259703
Stanley Morgan other: See Remarks Below 1585 BROADWAY, NEW YORK NY 10036
Wong Arthur Lap Tat director C/O 27 UNION SQUARE WEST, SUITE 502, NEW YORK NY 10003
Wu Qizhou director, officer: COO
Tse Yiu Wong director 4TH FL BLDG E NO 501, JEN GANG RD, SHANGHAI CHINA F4 9999999
Shengbin Yu officer: Senior Vice President HENGLONG BUILDING #1 GUANSHAN FIRST RD, EAST LAKE HI-TECH ZONE, WUHAN, HUBEI PROVINCE F4 430073
Liping Xie other: Wife of Chairman
Haimian Cai director 3170 OTTER CREEK COURT, ANN ARBOR MI 48105
Hanlin Chen director, 10 percent owner, officer: President and CEO
Shaobo Wang officer: Senior Vice President HENGLONG BUILDING #1 GUANSHAN FIRST RD, EAST LAKE HI-TECH ZONE, WUHAN, HUBEI PROVINCE F4 430073
Yijun Xia officer: Vice President NO. 1 HENGLONG ROAD, YUQIAO DEV. ZONE, SHASHI DISTRICT, JINGZHOU CITY, HUBEI PROVINCE F4 434000
Guangxun Xu director 17 WINDERMERE AVENUE, FINCHLEY, LONDON X0 N3 3QX
Robert Tung director 1733 LEHAVRE DR, POTOMAC MD 20854
Daming Hu officer: Chief Accountant

China Automotive Systems (China Automotive Systems) Headlines