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Associated International Hotels (HKSE:00105) Gross Margin % : 67.75% (As of Mar. 2024)


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What is Associated International Hotels Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Associated International Hotels's Gross Profit for the six months ended in Mar. 2024 was HK$98.3 Mil. Associated International Hotels's Revenue for the six months ended in Mar. 2024 was HK$145.0 Mil. Therefore, Associated International Hotels's Gross Margin % for the quarter that ended in Mar. 2024 was 67.75%.

Warning Sign:

Associated International Hotels Ltd gross margin has been in long-term decline. The average rate of decline per year is -5%.


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

HKSE:00105' s Gross Margin % Range Over the Past 10 Years
Min: 67.72   Med: 85.25   Max: 87.85
Current: 67.92


During the past 13 years, the highest Gross Margin % of Associated International Hotels was 87.85%. The lowest was 67.72%. And the median was 85.25%.

HKSE:00105's Gross Margin % is ranked better than
79.17% of 1642 companies
in the Real Estate industry
Industry Median: 36.155 vs HKSE:00105: 67.92

Associated International Hotels had a gross margin of 67.75% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Associated International Hotels was -5.00% per year.


Associated International Hotels Gross Margin % Historical Data

The historical data trend for Associated International Hotels'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.

Associated International Hotels Gross Margin % Chart

Associated International Hotels Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 84.58 78.73 70.41 71.48 67.72

Associated International Hotels Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 71.83 71.12 67.69 67.75 68.09

Competitive Comparison of Associated International Hotels's Gross Margin %

For the Real Estate Services subindustry, Associated International Hotels'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.


Associated International Hotels's Gross Margin % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Associated International Hotels's Gross Margin % distribution charts can be found below:

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



Associated International Hotels Gross Margin % Calculation

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

Associated International Hotels's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=197.8 / 292.143
=(Revenue - Cost of Goods Sold) / Revenue
=(292.143 - 94.299) / 292.143
=67.72 %

Associated International Hotels's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=98.3 / 145.034
=(Revenue - Cost of Goods Sold) / Revenue
=(145.034 - 46.769) / 145.034
=67.75 %

* 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.


Associated International Hotels  (HKSE:00105) 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

Associated International Hotels had a gross margin of 67.75% for the quarter that ended in Mar. 2024 => Durable 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.


Associated International Hotels Gross Margin % Related Terms

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Associated International Hotels Business Description

Traded in Other Exchanges
N/A
Address
63 Nathan Road, 9th Floor, iSQUARE, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
Associated International Hotels Ltd is a Hong-Kong investment holding company principally engaged in property-related businesses. Its only reportable segment is Property leasing. The company generates revenue from Interest income, Management fees, and Others. The properties under the company include iSQUARE, Good Luck Industrial Building as well as the offices in Euro Trade Centre in Hong Kong. Geographically, it derives revenue from Hong Kong.

Associated International Hotels Headlines

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