GDS Holdings (GDS Holdings) Gross Profit : $280 Mil (TTM As of Sep. 2023)

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What is GDS Holdings Gross Profit?

GDS Holdings's gross profit for the three months ended in Sep. 2023 was $61 Mil. GDS Holdings's gross profit for the trailing twelve months (TTM) ended in Sep. 2023 was $280 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. GDS Holdings's gross profit for the three months ended in Sep. 2023 was $61 Mil. GDS Holdings's Revenue for the three months ended in Sep. 2023 was $345 Mil. Therefore, GDS Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 17.76%.

GDS Holdings had a gross margin of 17.76% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

During the past 9 years, the highest Gross Margin % of GDS Holdings was 27.02%. The lowest was 17.12%. And the median was 25.16%.

Warning Sign:

GDS Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.4%.

GDS Holdings Gross Profit Historical Data

The historical data trend for GDS Holdings'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.

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GDS Holdings Gross Profit Chart

GDS Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Gross Profit

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90.42

148.67

237.10

279.38

277.67

GDS Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Gross Profit	Get a 7-Day Free Trial															70.21	70.00	71.35	76.94	61.31

Competitive Comparison of GDS Holdings's Gross Profit

For the Information Technology Services subindustry, GDS Holdings'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.

GDS Holdings's Gross Profit Distribution in the Software Industry

For the Software industry and Technology sector, GDS Holdings's Gross Profit distribution charts can be found below:

* The bar in red indicates where GDS Holdings's Gross Profit falls into.

GDS Holdings Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

GDS Holdings's Gross Profit for the fiscal year that ended in Dec. 2022 is calculated as

Gross Profit (A: Dec. 2022 )	=	Revenue	-	Cost of Goods Sold
	=	1337.641	-	1059.967
	=	278

GDS Holdings's Gross Profit for the quarter that ended in Sep. 2023 is calculated as

Gross Profit (Q: Sep. 2023 )	=	Revenue	-	Cost of Goods Sold
	=	345.172	-	283.86
	=	61

Gross Profit for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $280 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

GDS Holdings'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 )
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	61	/	345.172
	=	17.76 %

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.

GDS Holdings (NAS:GDS) 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

GDS Holdings had a gross margin of 17.76% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

GDS Holdings Gross Profit Related Terms

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GDS Holdings (GDS Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » GDS Holdings Ltd (NAS:GDS) » Definitions » Gross Profit

Comparable Companies

Traded in Other Exchanges

GDS:Mexico 09698:Hong Kong G40:Germany G1DS34:Brazil

Address

No. 999 Zhouhai Road, F4/F5, Building C, Sunland International, Pudong, Shanghai, CHN, 200137

Website

https://www.gds-services.com

GDS Holdings started as an IT service provider in 2001 then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. It has aggressively raised capital over the past four years for expansion. Its data centers are located predominantly in and around the Tier 1 cities in China and it has also started an expanding into Southeast Asia. GDS listed on the NASDAQ in 2016 and completed a secondary listing in Hong Kong in 2020.