Gross Margin % is calculated as gross profit divided by its revenue. Giti Tire's Gross Profit for the
three
months ended in Mar. 2024 was ¥212 Mil. Giti Tire's Revenue for the
three
months ended in Mar. 2024 was ¥1,074 Mil. Therefore, Giti Tire's Gross Margin % for the quarter that ended in Mar. 2024 was 19.75%.
Warning Sign:
Giti Tire Corp gross margin has been in long-term decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for Giti Tire's Gross Margin % or its related term are showing as below:
SHSE:600182'
s Gross Margin % Range Over the Past 10 Years
Min: 10.84 Med: 18.39 Max: 24.37
Current: 20.8
During the past 13 years, the highestGross Margin % of Giti Tire was 24.37%. The lowest was 10.84%. And the median was 18.39%.
SHSE:600182's Gross Margin % is ranked better than 53.26% of 1273
companies
in the Vehicles & Parts industry
Industry Median: 19.79
vs SHSE:600182: 20.80
Giti Tire had a gross margin of 19.75% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Giti Tire was -3.10% per year.
Giti Tire Gross Margin % Historical Data
The historical data trend for Giti Tire'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 Giti Tire's Gross Margin %
For the Auto Parts subindustry, Giti Tire'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.
Giti Tire's Gross Margin % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Giti Tire's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Giti Tire'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
Giti Tire had a gross margin of 19.75% 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.
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