Top Education Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.1%.
The historical rank and industry rank for Top Education Group's Gross Margin % or its related term are showing as below:
HKSE:01752'
s Gross Margin % Range Over the Past 10 Years
Min: 40.52 Med: 50.74 Max: 54.94
Current: 44.06
During the past 9 years, the highestGross Margin % of Top Education Group was 54.94%. The lowest was 40.52%. And the median was 50.74%.
HKSE:01752's Gross Margin % is ranked worse than 54.88% of 246
companies
in the Education industry
Industry Median: 47.335
vs HKSE:01752: 44.06
Top Education Group had a gross margin of 41.30% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Top Education Group was -5.10% per year.
Top Education Group Gross Margin % Historical Data
The historical data trend for Top Education 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.
Competitive Comparison of Top Education Group's Gross Margin %
For the Education & Training Services subindustry, Top Education 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.
Top Education Group's Gross Margin % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Top Education Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Top Education Group'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.
Top Education Group (HKSE:01752) 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
Top Education Group had a gross margin of 41.30% for the quarter that ended in Dec. 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.
Top Education Group Gross Margin % Related Terms
Thank you for viewing the detailed overview of Top Education Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Top Education Group (HKSE:01752) Business Description
Top Education Group Ltd offers the provision of private higher education services and English language courses in Australia. The company offers Undergraduate and Postgraduate level degrees in business and accounting areas. Geographically, it operates within Australia. The company generates all of its revenue from Australia.
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