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Darco Water Technologies (SGX:BLR) Gross Margin % : 15.36% (As of Jun. 2023)


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What is Darco Water Technologies Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Darco Water Technologies's Gross Profit for the six months ended in Jun. 2023 was S$5.95 Mil. Darco Water Technologies's Revenue for the six months ended in Jun. 2023 was S$38.71 Mil. Therefore, Darco Water Technologies's Gross Margin % for the quarter that ended in Jun. 2023 was 15.36%.

Warning Sign:

Darco Water Technologies Ltd 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 Darco Water Technologies's Gross Margin % or its related term are showing as below:

SGX:BLR' s Gross Margin % Range Over the Past 10 Years
Min: 13.2   Med: 17.67   Max: 30.19
Current: 16.7


During the past 13 years, the highest Gross Margin % of Darco Water Technologies was 30.19%. The lowest was 13.20%. And the median was 17.67%.

SGX:BLR's Gross Margin % is ranked worse than
77.71% of 2943 companies
in the Industrial Products industry
Industry Median: 26.47 vs SGX:BLR: 16.70

Darco Water Technologies had a gross margin of 15.36% for the quarter that ended in Jun. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Darco Water Technologies was -6.40% per year.


Darco Water Technologies Gross Margin % Historical Data

The historical data trend for Darco Water Technologies'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.

Darco Water Technologies Gross Margin % Chart

Darco Water Technologies Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.65 13.37 17.44 13.20 16.51

Darco Water Technologies Semi-Annual Data
Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
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 15.72 12.09 14.55 17.80 15.36

Competitive Comparison of Darco Water Technologies's Gross Margin %

For the Pollution & Treatment Controls subindustry, Darco Water Technologies'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.


Darco Water Technologies's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Darco Water Technologies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Darco Water Technologies's Gross Margin % falls into.



Darco Water Technologies Gross Margin % Calculation

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

Darco Water Technologies's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=12.8 / 77.705
=(Revenue - Cost of Goods Sold) / Revenue
=(77.705 - 64.877) / 77.705
=16.51 %

Darco Water Technologies's Gross Margin for the quarter that ended in Jun. 2023 is calculated as


Gross Margin % (Q: Jun. 2023 )=Gross Profit (Q: Jun. 2023 ) / Revenue (Q: Jun. 2023 )
=5.9 / 38.712
=(Revenue - Cost of Goods Sold) / Revenue
=(38.712 - 32.766) / 38.712
=15.36 %

* 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.


Darco Water Technologies  (SGX:BLR) 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

Darco Water Technologies had a gross margin of 15.36% for the quarter that ended in Jun. 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.


Darco Water Technologies Gross Margin % Related Terms

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Darco Water Technologies (SGX:BLR) Business Description

Traded in Other Exchanges
N/A
Address
120 Lower Delta Road, No. 04-03 Cendex Centre, Singapore, SGP, 169208
Darco Water Technologies Ltd is a provider of integrated engineering and knowledge-based water and waste water treatment solutions, and vacuum systems with a global presence in China, Malaysia and Singapore. It is also an Engineering, Procurement, and Construction player specializing in industrial water treatment. The company's segments include EE Systems that designs, fabricates, assembles, installs and commissions engineered water systems for industrial application; WM Services which services and maintains water and wastewater treatment plants; and Trading is engaged in the trade and supplies of goods comprising chemicals, electrical controls and related instruments used in water treatment systems.

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