Skyworth Group (FRA:KYW) Gross Margin % : 14.83% (As of Dec. 2023)

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What is Skyworth Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Skyworth Group's Gross Profit for the six months ended in Dec. 2023 was €700 Mil. Skyworth Group's Revenue for the six months ended in Dec. 2023 was €4,717 Mil. Therefore, Skyworth Group's Gross Margin % for the quarter that ended in Dec. 2023 was 14.83%.

Warning Sign:

Skyworth Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.9%.

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

FRA:KYW' s Gross Margin % Range Over the Past 10 Years
Min: 13.97 Med: 18.6 Max: 21.93
Current: 13.97

During the past 13 years, the highest Gross Margin % of Skyworth Group was 21.93%. The lowest was 13.97%. And the median was 18.60%.

FRA:KYW's Gross Margin % is ranked worse than
75.47% of 2438 companies
in the Hardware industry
Industry Median: 24.415 vs FRA:KYW: 13.97

Skyworth Group had a gross margin of 14.83% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Skyworth Group was -4.90% per year.

Skyworth Group Gross Margin % Historical Data

The historical data trend for Skyworth Group'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.

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Skyworth Group Gross Margin % Chart

Skyworth Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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20.13

17.87

16.78

15.34

13.97

Skyworth Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															16.94	15.97	14.82	13.00	14.83

Competitive Comparison of Skyworth Group's Gross Margin %

For the Consumer Electronics subindustry, Skyworth Group'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.

Skyworth Group's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Skyworth Group's Gross Margin % distribution charts can be found below:

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

Skyworth Group Gross Margin % Calculation

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

Skyworth Group'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 )
	=	1238.7	/	8865.498
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(8865.498 - 7626.812)	/	8865.498
	=	13.97 %

Skyworth Group'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 )
	=	699.5	/	4717.281
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4717.281 - 4017.735)	/	4717.281
	=	14.83 %

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.

Skyworth Group (FRA:KYW) 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

Skyworth Group had a gross margin of 14.83% 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.

Skyworth Group Gross Margin % Related Terms

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Skyworth Group (FRA:KYW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Skyworth Group Ltd (FRA:KYW) » Definitions » Gross Margin %

Traded in Other Exchanges

SWDHF:USA 00751:Hong Kong

Address

20 Westlands Road, Rooms 1601-04 Westlands Centre, Quarry Bay, Hong Kong, HKG

Website

http://www.skyworth.com

Skyworth Group Ltd is principally engaged in the manufacture and sales of smart TV systems, home access systems, smart white appliances, intelligent manufacturing, internet value-added services, property development, property holding, photovoltaic products, modern services, and trading of other products. The company has four operating segments; Multimedia business, Smart systems technology business, New energy business, and Smart appliances business. The Group's operations are located in the PRC, Asia (other than the PRC), the Americas, Europe, Africa, and other regions and it derives a majority of its revenue from the People's Republic of China.

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