Gross Margin % is calculated as gross profit divided by its revenue. Nano Magic's Gross Profit for the
three
months ended in Dec. 2023 was $0.01 Mil. Nano Magic's Revenue for the
three
months ended in Dec. 2023 was $0.72 Mil. Therefore, Nano Magic's Gross Margin % for the quarter that ended in Dec. 2023 was 0.70%.
Warning Sign:
Nano Magic Inc gross margin has been in long-term decline. The average rate of decline per year is -17.2%.
The historical rank and industry rank for Nano Magic's Gross Margin % or its related term are showing as below:
NMGX'
s Gross Margin % Range Over the Past 10 Years
Min: 3.73 Med: 31.65 Max: 43.22
Current: 13.08
During the past 13 years, the highestGross Margin % of Nano Magic was 43.22%. The lowest was 3.73%. And the median was 31.65%.
NMGX's Gross Margin % is ranked worse than 75.66% of 1508
companies
in the Chemicals industry
Industry Median: 22.245
vs NMGX: 13.08
Nano Magic had a gross margin of 0.70% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nano Magic was -17.20% per year.
Nano Magic Gross Margin % Historical Data
The historical data trend for Nano Magic'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 Nano Magic's Gross Margin %
For the Specialty Chemicals subindustry, Nano Magic'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.
Nano Magic's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Nano Magic's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nano Magic'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
Nano Magic had a gross margin of 0.70% for the quarter that ended in Dec. 2023 => 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.
Nano Magic Gross Margin % Related Terms
Thank you for viewing the detailed overview of Nano Magic's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Nano Magic Inc is engaged in the marketing and sale of products enabled by nanotechnology. It develops and sells products based on its portfolio of intellectual property and its products include a portfolio of nano-layer coatings, nano-based cleaners, printable inks, pastes, and thermal management materials. Its products can be used on eyeglasses, extreme sport and safety glasses and goggles, electronic screens, windows, mirrors, shower doors, and cleaning everyday household surfaces.
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