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Melbourne Enterprises (HKSE:00158) Gross Margin % : 78.61% (As of Sep. 2023)


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What is Melbourne Enterprises Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Melbourne Enterprises's Gross Profit for the six months ended in Sep. 2023 was HK$63.1 Mil. Melbourne Enterprises's Revenue for the six months ended in Sep. 2023 was HK$80.2 Mil. Therefore, Melbourne Enterprises's Gross Margin % for the quarter that ended in Sep. 2023 was 78.61%.

Warning Sign:

Melbourne Enterprises Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.4%.


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

HKSE:00158' s Gross Margin % Range Over the Past 10 Years
Min: 69.44   Med: 82.74   Max: 86.61
Current: 74.06


During the past 13 years, the highest Gross Margin % of Melbourne Enterprises was 86.61%. The lowest was 69.44%. And the median was 82.74%.

HKSE:00158's Gross Margin % is ranked better than
84.73% of 1650 companies
in the Real Estate industry
Industry Median: 36.775 vs HKSE:00158: 74.06

Melbourne Enterprises had a gross margin of 78.61% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Melbourne Enterprises was -3.40% per year.


Melbourne Enterprises Gross Margin % Historical Data

The historical data trend for Melbourne Enterprises'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.

Melbourne Enterprises Gross Margin % Chart

Melbourne Enterprises Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 84.65 81.77 69.44 77.41 74.06

Melbourne Enterprises Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 66.77 78.22 76.58 69.35 78.61

Competitive Comparison of Melbourne Enterprises's Gross Margin %

For the Real Estate Services subindustry, Melbourne Enterprises'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.


Melbourne Enterprises's Gross Margin % Distribution in the Real Estate Industry

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

* The bar in red indicates where Melbourne Enterprises's Gross Margin % falls into.



Melbourne Enterprises Gross Margin % Calculation

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

Melbourne Enterprises's Gross Margin for the fiscal year that ended in Sep. 2023 is calculated as

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=116.9 / 157.894
=(Revenue - Cost of Goods Sold) / Revenue
=(157.894 - 40.965) / 157.894
=74.06 %

Melbourne Enterprises's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=63.1 / 80.205
=(Revenue - Cost of Goods Sold) / Revenue
=(80.205 - 17.155) / 80.205
=78.61 %

* 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.


Melbourne Enterprises  (HKSE:00158) 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

Melbourne Enterprises had a gross margin of 78.61% for the quarter that ended in Sep. 2023 => 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.


Melbourne Enterprises Gross Margin % Related Terms

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


Melbourne Enterprises (HKSE:00158) Business Description

Traded in Other Exchanges
N/A
Address
33 Queen’s Road Central, Rooms 2102-4, Melbourne Plaza, Hong Kong, HKG
Melbourne Enterprises Ltd is an investment holding company. The company's only operating segment is property investment. It generates maximum revenue from the Rental income. The properties under the company include Melbourne Plaza, Kimley Commercial Building, as well as residential properties in the Foshan Golf Club project.

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