HSHCY (Haier Smart Home Co) Gross Margin % : 20.34% (As of Dec. 2024)

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What is Haier Smart Home Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Haier Smart Home Co's Gross Profit for the three months ended in Dec. 2024 was $2,319 Mil. Haier Smart Home Co's Revenue for the three months ended in Dec. 2024 was $11,401 Mil. Therefore, Haier Smart Home Co's Gross Margin % for the quarter that ended in Dec. 2024 was 20.34%.

Warning Sign:

Haier Smart Home Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.7%.

The historical rank and industry rank for Haier Smart Home Co's Gross Margin % or its related term are showing as below:

HSHCY' s Gross Margin % Range Over the Past 10 Years
Min: 27.49 Med: 29.76 Max: 31.33
Current: 27.8

During the past 13 years, the highest Gross Margin % of Haier Smart Home Co was 31.33%. The lowest was 27.49%. And the median was 29.76%.

HSHCY's Gross Margin % is ranked worse than
54.05% of 420 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 29.085 vs HSHCY: 27.80

Haier Smart Home Co had a gross margin of 20.34% for the quarter that ended in Dec. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Haier Smart Home Co was -1.70% per year.

Haier Smart Home Co Gross Margin % Historical Data

The historical data trend for Haier Smart Home Co'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.

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Haier Smart Home Co Gross Margin % Chart

Haier Smart Home Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Gross Margin %

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29.68

31.33

27.49

27.80

Haier Smart Home Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Gross Margin %	Get a 7-Day Free Trial															19.00	28.95	32.33	31.32	20.34

Competitive Comparison of Haier Smart Home Co's Gross Margin %

For the Furnishings, Fixtures & Appliances subindustry, Haier Smart Home Co'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.

Haier Smart Home Co's Gross Margin % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Haier Smart Home Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Haier Smart Home Co's Gross Margin % falls into.

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Haier Smart Home Co Gross Margin % Calculation

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

Haier Smart Home Co's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )	=	Gross Profit (A: Dec. 2024 )	/	Revenue (A: Dec. 2024 )
	=	10918.5	/	39279.358
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(39279.358 - 28360.88)	/	39279.358
	=	27.80 %

Haier Smart Home Co's Gross Margin for the quarter that ended in Dec. 2024 is calculated as

Gross Margin % (Q: Dec. 2024 )	=	Gross Profit (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	2319.3	/	11401.38
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11401.38 - 9082.061)	/	11401.38
	=	20.34 %

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.

Haier Smart Home Co (OTCPK:HSHCY) 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

Haier Smart Home Co had a gross margin of 20.34% for the quarter that ended in Dec. 2024 => Competition eroding margins

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.

Haier Smart Home Co Gross Margin % Related Terms

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Haier Smart Home Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Haier Smart Home Co Ltd (OTCPK:HSHCY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

HRSHF:USA QIHCF:USA 06690:Hong Kong HAI0:Germany 690E:Germany 690D:Germany 690D:Germany 690D:Germany 600690:China 690D:Austria

Address

Haier Industrial Park, Laoshan District, Shandong Province, Qingdao, CHN, 266101

Website

https://smart-home.haier.com/cn

Haier Smart Home is one of the largest household appliance manufacturers globally, with key products spanning refrigerators, washing machines, kitchen appliances, air conditioners, and water solutions. It has been consistently among the top three in China by retail sales in most home appliance categories. The company has also established a footprint in distribution channel services and commercial refrigeration business. Haier generates around 50% of sales outside China. As of December 2024, Haier Group and its subsidiaries are the largest shareholders of Haier Smart Home with around 29% equity interest in aggregate.