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Guangdong Investment (Guangdong Investment) Gross Margin % : 35.96% (As of Dec. 2023)


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What is Guangdong Investment Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Guangdong Investment's Gross Profit for the six months ended in Dec. 2023 was $591 Mil. Guangdong Investment's Revenue for the six months ended in Dec. 2023 was $1,643 Mil. Therefore, Guangdong Investment's Gross Margin % for the quarter that ended in Dec. 2023 was 35.96%.

Warning Sign:

Guangdong Investment Ltd gross margin has been in long-term decline. The average rate of decline per year is -6.3%.


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

GGDVY' s Gross Margin % Range Over the Past 10 Years
Min: 39.16   Med: 54.92   Max: 67.03
Current: 41.63


During the past 13 years, the highest Gross Margin % of Guangdong Investment was 67.03%. The lowest was 39.16%. And the median was 54.92%.

GGDVY's Gross Margin % is ranked better than
72.37% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs GGDVY: 41.63

Guangdong Investment had a gross margin of 35.96% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Guangdong Investment was -6.30% per year.


Guangdong Investment Gross Margin % Historical Data

The historical data trend for Guangdong Investment'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.

Guangdong Investment Gross Margin % Chart

Guangdong Investment 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 52.47 40.49 39.16 42.35 41.63

Guangdong Investment Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 36.39 44.74 39.83 48.04 35.96

Competitive Comparison of Guangdong Investment's Gross Margin %

For the Utilities - Regulated Water subindustry, Guangdong Investment'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.


Guangdong Investment's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Guangdong Investment's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Guangdong Investment's Gross Margin % falls into.



Guangdong Investment Gross Margin % Calculation

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

Guangdong Investment'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 )
=1290.1 / 3098.657
=(Revenue - Cost of Goods Sold) / Revenue
=(3098.657 - 1808.587) / 3098.657
=41.63 %

Guangdong Investment'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 )
=590.8 / 1642.877
=(Revenue - Cost of Goods Sold) / Revenue
=(1642.877 - 1052.112) / 1642.877
=35.96 %

* 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.


Guangdong Investment  (OTCPK:GGDVY) 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

Guangdong Investment had a gross margin of 35.96% 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.


Guangdong Investment Gross Margin % Related Terms

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


Guangdong Investment (Guangdong Investment) Business Description

Traded in Other Exchanges
Address
148 Connaught Road Central, 28th and 29th Floors, Guangdong Investment Tower, Hong Kong, HKG
Guangdong Investment Ltd is engaged in investment holding, water resources, property investment and development, department store operation, hotel ownership, operation and management, investment in energy projects, road, and bridge operation. Its segments include water resources, property investment and development, department store operation, electric power generation, hotel operation and management, road and bridge segment, and others segment. The company derives most of the revenue from the water resources segment that engages in water distribution, sewage treatment, and construction of water supply and sewage treatment infrastructure for customers in Mainland China and Hong Kong.

Guangdong Investment (Guangdong Investment) Headlines