China XLX Fertiliser Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.2%.
The historical rank and industry rank for China XLX Fertiliser's Gross Margin % or its related term are showing as below:
HKSE:01866'
s Gross Margin % Range Over the Past 10 Years
Min: 17.01 Med: 21.1 Max: 24.36
Current: 17.01
During the past 13 years, the highestGross Margin % of China XLX Fertiliser was 24.36%. The lowest was 17.01%. And the median was 21.10%.
HKSE:01866's Gross Margin % is ranked worse than 61.04% of 249
companies
in the Agriculture industry
Industry Median: 22.46
vs HKSE:01866: 17.01
China XLX Fertiliser had a gross margin of 14.23% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for China XLX Fertiliser was -5.20% per year.
China XLX Fertiliser Gross Margin % Historical Data
The historical data trend for China XLX Fertiliser'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 China XLX Fertiliser's Gross Margin %
For the Agricultural Inputs subindustry, China XLX Fertiliser'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.
China XLX Fertiliser's Gross Margin % Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, China XLX Fertiliser's Gross Margin % distribution charts can be found below:
* The bar in red indicates where China XLX Fertiliser'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.
China XLX Fertiliser (HKSE:01866) 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
China XLX Fertiliser had a gross margin of 14.23% for the quarter that ended in Dec. 2024 => 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.
China XLX Fertiliser Gross Margin % Related Terms
Thank you for viewing the detailed overview of China XLX Fertiliser's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
China XLX Fertiliser Ltd is an investment holding company. Along with its subsidiaries, it is engaged in the manufacturing and sale of fertilizers. It operates in the following segments: Urea, Compound fertilizer, DMF, Methanol, Melamine, Urea Solution for vehicles, liquid ammonia, Medical Intermediate, and others. Its geographical segments are China and Overseas, of which China accounts for the vast majority of its revenue.
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