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Zhejiang Rongtai Electric Material Co (SHSE:603119) Gross Margin % : 37.17% (As of Sep. 2024)


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What is Zhejiang Rongtai Electric Material Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zhejiang Rongtai Electric Material Co's Gross Profit for the three months ended in Sep. 2024 was ¥116 Mil. Zhejiang Rongtai Electric Material Co's Revenue for the three months ended in Sep. 2024 was ¥311 Mil. Therefore, Zhejiang Rongtai Electric Material Co's Gross Margin % for the quarter that ended in Sep. 2024 was 37.17%.


The historical rank and industry rank for Zhejiang Rongtai Electric Material Co's Gross Margin % or its related term are showing as below:

SHSE:603119' s Gross Margin % Range Over the Past 10 Years
Min: 26.2   Med: 34.24   Max: 37.07
Current: 35.62


During the past 5 years, the highest Gross Margin % of Zhejiang Rongtai Electric Material Co was 37.07%. The lowest was 26.20%. And the median was 34.24%.

SHSE:603119's Gross Margin % is ranked better than
70.46% of 2414 companies
in the Hardware industry
Industry Median: 24.615 vs SHSE:603119: 35.62

Zhejiang Rongtai Electric Material Co had a gross margin of 37.17% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Zhejiang Rongtai Electric Material Co was 0.00% per year.


Zhejiang Rongtai Electric Material Co Gross Margin % Historical Data

The historical data trend for Zhejiang Rongtai Electric Material 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.

Zhejiang Rongtai Electric Material Co Gross Margin % Chart

Zhejiang Rongtai Electric Material Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
26.20 31.91 34.24 35.56 37.07

Zhejiang Rongtai Electric Material Co Quarterly Data
Dec19 Dec20 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 37.80 37.86 36.90 31.20 37.17

Competitive Comparison of Zhejiang Rongtai Electric Material Co's Gross Margin %

For the Electronic Components subindustry, Zhejiang Rongtai Electric Material 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.


Zhejiang Rongtai Electric Material Co's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Zhejiang Rongtai Electric Material Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Zhejiang Rongtai Electric Material Co's Gross Margin % falls into.



Zhejiang Rongtai Electric Material Co Gross Margin % Calculation

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

Zhejiang Rongtai Electric Material 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 )
=296.7 / 800.255
=(Revenue - Cost of Goods Sold) / Revenue
=(800.255 - 503.594) / 800.255
=37.07 %

Zhejiang Rongtai Electric Material Co'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 )
=115.6 / 310.951
=(Revenue - Cost of Goods Sold) / Revenue
=(310.951 - 195.37) / 310.951
=37.17 %

* 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.


Zhejiang Rongtai Electric Material Co  (SHSE:603119) 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

Zhejiang Rongtai Electric Material Co had a gross margin of 37.17% for the quarter that ended in Sep. 2024 => Competition eroding margins


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.


Zhejiang Rongtai Electric Material Co Gross Margin % Related Terms

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Zhejiang Rongtai Electric Material Co Business Description

Traded in Other Exchanges
N/A
Address
No. 308, Zhongxing Road, Fengqiao Town, Nanhu, Zhejiang, Jiaxing, CHN, 314007
Zhejiang Rongtai Electric Material Co Ltd is a high-tech enterprise specializing in the research, development, production, and sales of new composite materials of high temperature resistant insulating mica with multiple plants in Zhejiang and Hunan, and is one of the global market leaders in mica products. Its main products include mica rigid materials, flexible materials, heat generating components, thermal management mica safety components and various mica derivative products. its mica products are widely used in new energy vehicles, rail transportation, aerospace and military ships, special wires and cables, intelligent household appliances and other related industrial fields, and provide customers with professional one-stop system solutions for electrical and thermal insulation.
Executives
Zheng Min Min Director
Ge Tai Rong Director
Cao Mei Sheng Director
Jing Fei Director

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