CAR (HKSE:00699) Gross Margin % : 13.79% (As of Dec. 2020)

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What is CAR Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. CAR's Gross Profit for the six months ended in Dec. 2020 was HK$550 Mil. CAR's Revenue for the six months ended in Dec. 2020 was HK$3,990 Mil. Therefore, CAR's Gross Margin % for the quarter that ended in Dec. 2020 was 13.79%.

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

HKSE:00699's Gross Margin % is not ranked ^*
in the Business Services industry.
Industry Median: 34.38
* Ranked among companies with meaningful Gross Margin % only.

CAR had a gross margin of 13.79% for the quarter that ended in Dec. 2020 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for CAR was 0.00% per year.

CAR Gross Margin % Historical Data

The historical data trend for CAR'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.

CAR Gross Margin % Chart

CAR Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Gross Margin %

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32.32

25.20

32.34

23.89

7.10

CAR Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20
Gross Margin %	Get a 7-Day Free Trial										32.58	31.46	16.71	-1.07	13.79

Competitive Comparison of CAR's Gross Margin %

For the Rental & Leasing Services subindustry, CAR'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.

CAR's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, CAR's Gross Margin % distribution charts can be found below:

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

CAR Gross Margin % Calculation

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

CAR's Gross Margin for the fiscal year that ended in Dec. 2020 is calculated as

Gross Margin % (A: Dec. 2020 )	=	Gross Profit (A: Dec. 2020 )	/	Revenue (A: Dec. 2020 )
	=	515.4	/	7260.073
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7260.073 - 6744.701)	/	7260.073
	=	7.10 %

CAR's Gross Margin for the quarter that ended in Dec. 2020 is calculated as

Gross Margin % (Q: Dec. 2020 )	=	Gross Profit (Q: Dec. 2020 )	/	Revenue (Q: Dec. 2020 )
	=	550.2	/	3989.588
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3989.588 - 3439.34)	/	3989.588
	=	13.79 %

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.

CAR (HKSE:00699) 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

CAR had a gross margin of 13.79% for the quarter that ended in Dec. 2020 => 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.

CAR Gross Margin % Related Terms

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CAR (HKSE:00699) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » CAR Inc (HKSE:00699) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 2A Zhonghuan South Road, 3rd Floor, Block B, Lead International, Wangjing, Chaoyang District, Beijing, CHN, 100102

Website

https://www.zuche.com

CAR Inc is engaged in providing car rental services. Its businesses include the provision of long-term and short-term car rental services, finance lease and the sales of used rental vehicles, among others. The company is engaged in vehicle parking management, processing and manufacture of auto parts, the provision of auto repair services, as well as the provision of information technology (IT) services. It also offers other services including accident coverage packages, GPS ( Global Positioning System) navigation systems, 24/7 roadside assistance, and others.

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