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Mechema Chemicals International (ROCO:4721) Gross Margin % : 17.82% (As of Sep. 2024)


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What is Mechema Chemicals International Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Mechema Chemicals International's Gross Profit for the three months ended in Sep. 2024 was NT$86 Mil. Mechema Chemicals International's Revenue for the three months ended in Sep. 2024 was NT$481 Mil. Therefore, Mechema Chemicals International's Gross Margin % for the quarter that ended in Sep. 2024 was 17.82%.


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

ROCO:4721' s Gross Margin % Range Over the Past 10 Years
Min: 6.81   Med: 10.19   Max: 18.8
Current: 18.8


During the past 13 years, the highest Gross Margin % of Mechema Chemicals International was 18.80%. The lowest was 6.81%. And the median was 10.19%.

ROCO:4721's Gross Margin % is ranked worse than
59.67% of 1505 companies
in the Chemicals industry
Industry Median: 22.05 vs ROCO:4721: 18.80

Mechema Chemicals International had a gross margin of 17.82% for the quarter that ended in Sep. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Mechema Chemicals International was 5.40% per year.


Mechema Chemicals International Gross Margin % Historical Data

The historical data trend for Mechema Chemicals International'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.

Mechema Chemicals International Gross Margin % Chart

Mechema Chemicals International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.54 11.79 13.36 9.69 10.10

Mechema Chemicals International Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 17.00 14.52 19.55 22.55 17.82

Competitive Comparison of Mechema Chemicals International's Gross Margin %

For the Specialty Chemicals subindustry, Mechema Chemicals International'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.


Mechema Chemicals International's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Mechema Chemicals International's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Mechema Chemicals International's Gross Margin % falls into.



Mechema Chemicals International Gross Margin % Calculation

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

Mechema Chemicals International's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=234.1 / 2316.364
=(Revenue - Cost of Goods Sold) / Revenue
=(2316.364 - 2082.298) / 2316.364
=10.10 %

Mechema Chemicals International's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=85.6 / 480.667
=(Revenue - Cost of Goods Sold) / Revenue
=(480.667 - 395.032) / 480.667
=17.82 %

* 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.


Mechema Chemicals International  (ROCO:4721) 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

Mechema Chemicals International had a gross margin of 17.82% for the quarter that ended in Sep. 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.


Mechema Chemicals International Gross Margin % Related Terms

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Mechema Chemicals International Business Description

Traded in Other Exchanges
N/A
Address
No. 1, Ta-Tung 1st. Road, Kung-Ying District, Taoyuan, TWN
Mechema Chemicals International Corp is engaged in the manufacturing, distribution, import, and export of cobalt and its compounds and manganese and its compounds. The segments of the company are the oxidation catalysts and the battery material department.

Mechema Chemicals International Headlines

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