The historical rank and industry rank for Swang Chai Chuan's Gross Margin % or its related term are showing as below:
HKSE:02321'
s Gross Margin % Range Over the Past 10 Years
Min: 11.84 Med: 13.35 Max: 14.13
Current: 12.45
During the past 6 years, the highestGross Margin % of Swang Chai Chuan was 14.13%. The lowest was 11.84%. And the median was 13.35%.
HKSE:02321's Gross Margin % is ranked worse than 79.55% of 308
companies
in the Retail - Defensive industry
Industry Median: 23.17
vs HKSE:02321: 12.45
Swang Chai Chuan had a gross margin of 11.77% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Swang Chai Chuan was 0.00% per year.
Swang Chai Chuan Gross Margin % Historical Data
The historical data trend for Swang Chai Chuan'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 Swang Chai Chuan's Gross Margin %
For the Grocery Stores subindustry, Swang Chai Chuan'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.
Swang Chai Chuan's Gross Margin % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Swang Chai Chuan's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Swang Chai Chuan'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
Swang Chai Chuan had a gross margin of 11.77% for the quarter that ended in Jun. 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.
Swang Chai Chuan Gross Margin % Related Terms
Thank you for viewing the detailed overview of Swang Chai Chuan's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Swang Chai Chuan Ltd is a distributor of Food and Beverages and other products for recognized international and domestic third-party brands and own brands in Malaysia. The company has one reportable segment which is the whole the business of distribution and sales of F&B and provision of logistics services, and warehousing services. It manages its business as a whole as the businesses of distribution and sales of F&B and provision of logistics, warehousing services, and others are carried out in Malaysia.
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