Texwinca Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -4.6%.
The historical rank and industry rank for Texwinca Holdings's Gross Margin % or its related term are showing as below:
FRA:TXW'
s Gross Margin % Range Over the Past 10 Years
Min: 25.44 Med: 31.36 Max: 34.09
Current: 25.44
During the past 13 years, the highestGross Margin % of Texwinca Holdings was 34.09%. The lowest was 25.44%. And the median was 31.36%.
FRA:TXW's Gross Margin % is ranked worse than 50.49% of 1026
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.67
vs FRA:TXW: 25.44
Texwinca Holdings had a gross margin of 23.97% for the quarter that ended in Sep. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Texwinca Holdings was -4.60% per year.
Texwinca Holdings Gross Margin % Historical Data
The historical data trend for Texwinca Holdings'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.
Competitive Comparison of Texwinca Holdings's Gross Margin %
For the Textile Manufacturing subindustry, Texwinca Holdings'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.
Texwinca Holdings's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Texwinca Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Texwinca Holdings's Gross Margin % falls into.
* 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.
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
Texwinca Holdings had a gross margin of 23.97% for the quarter that ended in Sep. 2024 => 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.
Texwinca Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Texwinca Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Texwinca Holdings Ltd is a Hong Kong-based company. The company is principally engaged in the textile business, which refers to production, dyeing, and sale of knitted fabric and yarn garments, and the retail & distribution of casual apparel and accessories business, which means retailing and distribution of casual apparel and accessories. The textile business and the retail and distribution business jointly account for majority of the company's total revenue. The company is also involved in providing repair and maintenance services for motor vehicles, offering franchise services, and others. The company generates its revenue from Mainland China, the United States, Japan, Hong Kong, and other areas, with Mainland China being the largest revenue contributor.
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