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The Hongkong and Shanghai Hotels (The Hongkong and Shanghai Hotels) Gross Margin % : 35.31% (As of Dec. 2023)


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What is The Hongkong and Shanghai Hotels Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Hongkong and Shanghai Hotels's Gross Profit for the six months ended in Dec. 2023 was $256 Mil. The Hongkong and Shanghai Hotels's Revenue for the six months ended in Dec. 2023 was $726 Mil. Therefore, The Hongkong and Shanghai Hotels's Gross Margin % for the quarter that ended in Dec. 2023 was 35.31%.

Warning Sign:

The Hongkong and Shanghai Hotels Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.5%.


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

HKSHF' s Gross Margin % Range Over the Past 10 Years
Min: 36.38   Med: 54.07   Max: 56.85
Current: 39.63


During the past 13 years, the highest Gross Margin % of The Hongkong and Shanghai Hotels was 56.85%. The lowest was 36.38%. And the median was 54.07%.

HKSHF's Gross Margin % is ranked worse than
56.14% of 766 companies
in the Travel & Leisure industry
Industry Median: 43.24 vs HKSHF: 39.63

The Hongkong and Shanghai Hotels had a gross margin of 35.31% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The Hongkong and Shanghai Hotels was -5.50% per year.


The Hongkong and Shanghai Hotels Gross Margin % Historical Data

The historical data trend for The Hongkong and Shanghai Hotels'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.

The Hongkong and Shanghai Hotels Gross Margin % Chart

The Hongkong and Shanghai Hotels 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 53.17 36.38 45.91 44.78 39.63

The Hongkong and Shanghai Hotels 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 49.57 42.00 46.61 49.65 35.31

Competitive Comparison of The Hongkong and Shanghai Hotels's Gross Margin %

For the Lodging subindustry, The Hongkong and Shanghai Hotels'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.


The Hongkong and Shanghai Hotels's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Hongkong and Shanghai Hotels's Gross Margin % falls into.



The Hongkong and Shanghai Hotels Gross Margin % Calculation

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

The Hongkong and Shanghai Hotels'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 )
=411.7 / 1038.695
=(Revenue - Cost of Goods Sold) / Revenue
=(1038.695 - 627.033) / 1038.695
=39.63 %

The Hongkong and Shanghai Hotels'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 )
=256.2 / 725.627
=(Revenue - Cost of Goods Sold) / Revenue
=(725.627 - 469.41) / 725.627
=35.31 %

* 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.


The Hongkong and Shanghai Hotels  (OTCPK:HKSHF) 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

The Hongkong and Shanghai Hotels had a gross margin of 35.31% 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.


The Hongkong and Shanghai Hotels Gross Margin % Related Terms

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The Hongkong and Shanghai Hotels (The Hongkong and Shanghai Hotels) Business Description

Traded in Other Exchanges
Address
2 Ice House Street, 8th Floor, St. George’s Building, Central, Hong Kong, HKG
The Hongkong and Shanghai Hotels Ltd is a hotel owner and operator, domiciled in Hong Kong. The company organises itself into three segments: hotels, commercial properties, and clubs and services. The hotel's segment, which contributes the vast majority of consolidated revenue, includes the company's hotel operations under The Peninsula brand in major cities across the globe, the most significant of which is The Peninsula Hong Kong. The commercial properties segment leases office buildings, residential apartments and retail spaces. Clubs and services operate golf courses, wholesales food, and provides laundry services. Geographically, domestic operations are the most significant contributor to company revenue, followed by Other Asia, and the U.S. and Europe.

The Hongkong and Shanghai Hotels (The Hongkong and Shanghai Hotels) Headlines

From GuruFocus

Hong Kong and Shanghai Hotels Trading at a Massive Discount to NAV

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