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Texhong International Group (FRA:T1TA) Gross Margin % : 11.74% (As of Dec. 2024)


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What is Texhong International Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Texhong International Group's Gross Profit for the six months ended in Dec. 2024 was €182 Mil. Texhong International Group's Revenue for the six months ended in Dec. 2024 was €1,546 Mil. Therefore, Texhong International Group's Gross Margin % for the quarter that ended in Dec. 2024 was 11.74%.

Warning Sign:

Texhong International Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -9.2%.


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

FRA:T1TA' s Gross Margin % Range Over the Past 10 Years
Min: 6.44   Med: 14.4   Max: 22.07
Current: 12.44


During the past 13 years, the highest Gross Margin % of Texhong International Group was 22.07%. The lowest was 6.44%. And the median was 14.40%.

FRA:T1TA's Gross Margin % is ranked worse than
76.4% of 1021 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.27 vs FRA:T1TA: 12.44

Texhong International Group had a gross margin of 11.74% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Texhong International Group was -9.20% per year.


Texhong International Group Gross Margin % Historical Data

The historical data trend for Texhong International 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.

* Premium members only.

Texhong International Group Gross Margin % Chart

Texhong International Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.83 22.07 11.58 6.44 12.43

Texhong International Group Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 1.74 2.38 10.11 13.16 11.74

Competitive Comparison of Texhong International Group's Gross Margin %

For the Textile Manufacturing subindustry, Texhong International 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.


Texhong International Group's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Texhong International Group's Gross Margin % distribution charts can be found below:

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


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Texhong International Group Gross Margin % Calculation

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

Texhong International Group's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=375.6 / 3020.688
=(Revenue - Cost of Goods Sold) / Revenue
=(3020.688 - 2645.103) / 3020.688
=12.43 %

Texhong International Group's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=181.5 / 1545.889
=(Revenue - Cost of Goods Sold) / Revenue
=(1545.889 - 1364.375) / 1545.889
=11.74 %

* 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.


Texhong International Group  (FRA:T1TA) 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

Texhong International Group had a gross margin of 11.74% for the quarter that ended in Dec. 2024 => 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.


Texhong International Group Gross Margin % Related Terms

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Texhong International Group Business Description

Traded in Other Exchanges
Address
9 Hoi Shing Road, Room 03, 37th Floor, Cable TV Tower, Tsuen Wan, Hong Kong, HKG
Texhong International Group Ltd produces and distributes yarns, grey fabrics, non-woven fabrics and garment fabrics as well as garments. The company generates majority of its revenue from yarn products, with the rest from fabrics and garments. The company operates mainly operates its business in China, Southeast Asia and the Americas.

Texhong International Group Headlines

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