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Dongfeng Motor Group Co (FRA:D4D) Gross Margin % : 8.35% (As of Dec. 2023)


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What is Dongfeng Motor Group Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dongfeng Motor Group Co's Gross Profit for the six months ended in Dec. 2023 was €575 Mil. Dongfeng Motor Group Co's Revenue for the six months ended in Dec. 2023 was €6,889 Mil. Therefore, Dongfeng Motor Group Co's Gross Margin % for the quarter that ended in Dec. 2023 was 8.35%.

Warning Sign:

Dongfeng Motor Group Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.3%.


The historical rank and industry rank for Dongfeng Motor Group Co's Gross Margin % or its related term are showing as below:

FRA:D4D' s Gross Margin % Range Over the Past 10 Years
Min: 9.53   Med: 12.96   Max: 14.58
Current: 9.53


During the past 13 years, the highest Gross Margin % of Dongfeng Motor Group Co was 14.58%. The lowest was 9.53%. And the median was 12.96%.

FRA:D4D's Gross Margin % is ranked worse than
84.86% of 1268 companies
in the Vehicles & Parts industry
Industry Median: 19.635 vs FRA:D4D: 9.53

Dongfeng Motor Group Co had a gross margin of 8.35% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Dongfeng Motor Group Co was -7.30% per year.


Dongfeng Motor Group Co Gross Margin % Historical Data

The historical data trend for Dongfeng Motor Group Co'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.

Dongfeng Motor Group Co Gross Margin % Chart

Dongfeng Motor Group Co 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 13.35 14.58 12.58 9.53 9.53

Dongfeng Motor Group Co 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 9.26 11.74 7.49 10.92 8.35

Competitive Comparison of Dongfeng Motor Group Co's Gross Margin %

For the Auto Manufacturers subindustry, Dongfeng Motor Group Co'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.


Dongfeng Motor Group Co's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Dongfeng Motor Group Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Dongfeng Motor Group Co's Gross Margin % falls into.



Dongfeng Motor Group Co Gross Margin % Calculation

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

Dongfeng Motor Group Co'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 )
=1215.7 / 12754.804
=(Revenue - Cost of Goods Sold) / Revenue
=(12754.804 - 11539.107) / 12754.804
=9.53 %

Dongfeng Motor Group Co'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 )
=575.4 / 6888.609
=(Revenue - Cost of Goods Sold) / Revenue
=(6888.609 - 6313.253) / 6888.609
=8.35 %

* 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.


Dongfeng Motor Group Co  (FRA:D4D) 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

Dongfeng Motor Group Co had a gross margin of 8.35% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


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.


Dongfeng Motor Group Co Gross Margin % Related Terms

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


Dongfeng Motor Group Co (FRA:D4D) Business Description

Traded in Other Exchanges
Address
Special No. 1 Dongfeng Road, Wuhan Economic and Technology Development Zone, Hubei, Wuhan, CHN, 430056
Dongfeng Motor Group Co Ltd is engaged in vehicle manufacturing, covering other complete business systems relating to automobiles such as R&D of automobiles, parts and equipment manufacturing, automobile finance, automobile sales, and travel business. The company's segments include commercial vehicles, passenger vehicles, financing services, and corporate and others. The majority of its revenue is generated from the Passenger vehicles segment.

Dongfeng Motor Group Co (FRA:D4D) Headlines

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