Fulu Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Fulu Holdings's Gross Margin % or its related term are showing as below:
HKSE:02101'
s Gross Margin % Range Over the Past 10 Years
Min: 73.94 Med: 76.31 Max: 79.99
Current: 74.26
During the past 7 years, the highestGross Margin % of Fulu Holdings was 79.99%. The lowest was 73.94%. And the median was 76.31%.
HKSE:02101's Gross Margin % is ranked better than 95.62% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 36.675
vs HKSE:02101: 74.26
Fulu Holdings had a gross margin of 74.79% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Fulu Holdings was -1.20% per year.
Fulu Holdings Gross Margin % Historical Data
The historical data trend for Fulu Holdings'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 Fulu Holdings's Gross Margin %
For the Internet Retail subindustry, Fulu Holdings'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.
Fulu Holdings's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Fulu Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fulu Holdings'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.
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
Fulu Holdings had a gross margin of 74.79% 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.
Fulu Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Fulu Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Fulu Holdings Ltd is a third-party virtual goods and services platform operator in China. Its platform connects virtual goods vendors and virtual goods sales channels. It serves virtual goods vendors, covering leisure and entertainment, games, telecommunications, and lifestyle services, providing virtual goods vendors with access to a variety of sales channels, such as e-commerce and online payment platforms. It generates revenues from providing business-to-business services to virtual goods vendors and sales channels, including facilitating virtual goods transactions between virtual goods vendors and virtual goods sales channels and providing value-added services. It generates revenue from four business segments: leisure and entertainment; games; telecommunications; and lifestyle.
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