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Hywin Holdings (Hywin Holdings) Gross Margin % : 41.86% (As of Dec. 2022)


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What is Hywin Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hywin Holdings's Gross Profit for the six months ended in Dec. 2022 was $62.2 Mil. Hywin Holdings's Revenue for the six months ended in Dec. 2022 was $148.6 Mil. Therefore, Hywin Holdings's Gross Margin % for the quarter that ended in Dec. 2022 was 41.86%.

Warning Sign:

Hywin Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -3%.


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

HYW' s Gross Margin % Range Over the Past 10 Years
Min: 41.16   Med: 45.43   Max: 51.2
Current: 41.17


During the past 6 years, the highest Gross Margin % of Hywin Holdings was 51.20%. The lowest was 41.16%. And the median was 45.43%.

HYW's Gross Margin % is ranked worse than
59.89% of 526 companies
in the Asset Management industry
Industry Median: 51.705 vs HYW: 41.17

Hywin Holdings had a gross margin of 41.86% for the quarter that ended in Dec. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hywin Holdings was -3.00% per year.


Hywin Holdings Gross Margin % Historical Data

The historical data trend for Hywin 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.

* Premium members only.

Hywin Holdings Gross Margin % Chart

Hywin Holdings Annual Data
Trend Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial 45.53 44.85 45.32 45.71 41.16

Hywin Holdings Semi-Annual Data
Jun18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only 47.24 43.93 47.19 41.86 40.47

Competitive Comparison of Hywin Holdings's Gross Margin %

For the Asset Management subindustry, Hywin 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.


Hywin Holdings's Gross Margin % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Hywin Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hywin Holdings's Gross Margin % falls into.



Hywin Holdings Gross Margin % Calculation

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

Hywin Holdings's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=120.2 / 292.088
=(Revenue - Cost of Goods Sold) / Revenue
=(292.088 - 171.874) / 292.088
=41.16 %

Hywin Holdings's Gross Margin for the quarter that ended in Dec. 2022 is calculated as


Gross Margin % (Q: Dec. 2022 )=Gross Profit (Q: Dec. 2022 ) / Revenue (Q: Dec. 2022 )
=62.2 / 148.598
=(Revenue - Cost of Goods Sold) / Revenue
=(148.598 - 86.395) / 148.598
=41.86 %

* 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.


Hywin Holdings  (NAS:HYW) 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

Hywin Holdings had a gross margin of 41.86% for the quarter that ended in Dec. 2022 => 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.


Hywin Holdings Gross Margin % Related Terms

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Hywin Holdings (Hywin Holdings) Business Description

Traded in Other Exchanges
N/A
Address
8 Yincheng Mid. Road, F3, Hywin Financial Centre, Pudong New District, Shanghai, CHN, 200120
Hywin Holdings Ltd is a wealth management service provider in China. It primarily provide wealth management services, insurance brokerage services, asset management services and other services to clients.