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Zahrat Al Waha for Trading Co (SAU:3007) Gross Margin % : 10.86% (As of Mar. 2024)


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What is Zahrat Al Waha for Trading Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zahrat Al Waha for Trading Co's Gross Profit for the three months ended in Mar. 2024 was ﷼14.9 Mil. Zahrat Al Waha for Trading Co's Revenue for the three months ended in Mar. 2024 was ﷼137.1 Mil. Therefore, Zahrat Al Waha for Trading Co's Gross Margin % for the quarter that ended in Mar. 2024 was 10.86%.

Warning Sign:

Zahrat Al Waha for Trading Co gross margin has been in long-term decline. The average rate of decline per year is -6.4%.


The historical rank and industry rank for Zahrat Al Waha for Trading Co's Gross Margin % or its related term are showing as below:

SAU:3007' s Gross Margin % Range Over the Past 10 Years
Min: 9.24   Med: 16.51   Max: 25.09
Current: 13.29


During the past 9 years, the highest Gross Margin % of Zahrat Al Waha for Trading Co was 25.09%. The lowest was 9.24%. And the median was 16.51%.

SAU:3007's Gross Margin % is ranked worse than
80.11% of 372 companies
in the Packaging & Containers industry
Industry Median: 21.59 vs SAU:3007: 13.29

Zahrat Al Waha for Trading Co had a gross margin of 10.86% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Zahrat Al Waha for Trading Co was -6.40% per year.


Zahrat Al Waha for Trading Co Gross Margin % Historical Data

The historical data trend for Zahrat Al Waha for Trading 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.

* Premium members only.

Zahrat Al Waha for Trading Co Gross Margin % Chart

Zahrat Al Waha for Trading Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 17.02 17.46 16.00 9.24 12.31

Zahrat Al Waha for Trading Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 7.57 10.59 10.81 23.66 10.86

Competitive Comparison of Zahrat Al Waha for Trading Co's Gross Margin %

For the Packaging & Containers subindustry, Zahrat Al Waha for Trading 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.


Zahrat Al Waha for Trading Co's Gross Margin % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Zahrat Al Waha for Trading Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zahrat Al Waha for Trading Co's Gross Margin % falls into.



Zahrat Al Waha for Trading Co Gross Margin % Calculation

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

Zahrat Al Waha for Trading Co'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 )
=70.4 / 572.49
=(Revenue - Cost of Goods Sold) / Revenue
=(572.49 - 502.043) / 572.49
=12.31 %

Zahrat Al Waha for Trading Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=14.9 / 137.091
=(Revenue - Cost of Goods Sold) / Revenue
=(137.091 - 122.198) / 137.091
=10.86 %

* 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.


Zahrat Al Waha for Trading Co  (SAU:3007) 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

Zahrat Al Waha for Trading Co had a gross margin of 10.86% for the quarter that ended in Mar. 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.


Zahrat Al Waha for Trading Co Gross Margin % Related Terms

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Zahrat Al Waha for Trading Co (SAU:3007) Business Description

Traded in Other Exchanges
N/A
Address
Al Rabwa, Al Ihsa Street, P.O. Box 2980, Unit no 1, Building 7449, Riyadh, SAU, 12814
Zahrat Al Waha for Trading Co is a producer of PET preform and HDPE closure (caps) products. The principal activities of the company include the manufacture of semi-finished products from plastics, the manufacture of cans and boxes from plastics, the manufacture of bottles of various forms from plastics, the manufacture of products from plastics using the Roto mold method. The company operates in two segments namely the plastic bottles preforms which includes manufacturing and selling of plastic preforms and the plastic caps which includes manufacturing and selling of plastic caps.

Zahrat Al Waha for Trading Co (SAU:3007) Headlines

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