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China YuHua Education (HKSE:06169) Gross Margin % : 44.71% (As of Aug. 2024)


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What is China YuHua Education Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China YuHua Education's Gross Profit for the six months ended in Aug. 2024 was HK$601 Mil. China YuHua Education's Revenue for the six months ended in Aug. 2024 was HK$1,344 Mil. Therefore, China YuHua Education's Gross Margin % for the quarter that ended in Aug. 2024 was 44.71%.

Warning Sign:

China YuHua Education Corp Ltd gross margin has been in long-term decline. The average rate of decline per year is -7.7%.


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

HKSE:06169' s Gross Margin % Range Over the Past 10 Years
Min: 39.52   Med: 54.06   Max: 67.24
Current: 39.53


During the past 11 years, the highest Gross Margin % of China YuHua Education was 67.24%. The lowest was 39.52%. And the median was 54.06%.

HKSE:06169's Gross Margin % is ranked worse than
63.35% of 251 companies
in the Education industry
Industry Median: 48.27 vs HKSE:06169: 39.53

China YuHua Education had a gross margin of 44.71% for the quarter that ended in Aug. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for China YuHua Education was -7.70% per year.


China YuHua Education Gross Margin % Historical Data

The historical data trend for China YuHua Education'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.

China YuHua Education Gross Margin % Chart

China YuHua Education Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 61.72 67.24 59.61 48.22 39.52

China YuHua Education Semi-Annual Data
Aug14 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 62.64 46.93 49.50 34.42 44.71

Competitive Comparison of China YuHua Education's Gross Margin %

For the Education & Training Services subindustry, China YuHua Education'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 YuHua Education's Gross Margin % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, China YuHua Education's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China YuHua Education's Gross Margin % falls into.


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China YuHua Education Gross Margin % Calculation

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

China YuHua Education's Gross Margin for the fiscal year that ended in Aug. 2024 is calculated as

Gross Margin % (A: Aug. 2024 )=Gross Profit (A: Aug. 2024 ) / Revenue (A: Aug. 2024 )
=1071.4 / 2710.856
=(Revenue - Cost of Goods Sold) / Revenue
=(2710.856 - 1639.407) / 2710.856
=39.52 %

China YuHua Education's Gross Margin for the quarter that ended in Aug. 2024 is calculated as


Gross Margin % (Q: Aug. 2024 )=Gross Profit (Q: Aug. 2024 ) / Revenue (Q: Aug. 2024 )
=600.9 / 1343.8
=(Revenue - Cost of Goods Sold) / Revenue
=(1343.8 - 742.939) / 1343.8
=44.71 %

* 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 YuHua Education  (HKSE:06169) 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 YuHua Education had a gross margin of 44.71% for the quarter that ended in Aug. 2024 => 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.


China YuHua Education Gross Margin % Related Terms

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China YuHua Education Business Description

Traded in Other Exchanges
N/A
Address
3 Mazhuang Street, No. 21, 4th Floor, Block 10, Zhengdong New District, Zhengzhou, CHN
China YuHua Education is a leading Chinese private education operator offering higher education and secondary education. Total enrolled students reached 110,327 for the 2023-24 school year, ranking fourth among listed private higher education providers in China.
Executives
Bank Of America Corporation 2201 Interest of corporation controlled by you
Fischer Seth Hillel
Oasis Investments Ii Master Fund Ltd.
Oasis Investments Ii Offshore Feeder Ltd.
Oasis Management Company Ltd.
Li Hua 2501 Other
Li Guangyu 2307 Founder of a discretionary trust who can infl
Guangyu Investment Holdings Limited 2101 Beneficial owner
Baikal Lake Investment Holdings Limited 2201 Interest of corporation controlled by you
Tmf (cayman) Ltd. 2301 Trustee
Jpmorgan Chase & Co. 2201 Interest of corporation controlled by you

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