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Jiangsu Libert (SHSE:605167) Gross Margin % : 20.25% (As of Sep. 2024)


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What is Jiangsu Libert Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Jiangsu Libert's Gross Profit for the three months ended in Sep. 2024 was ¥161 Mil. Jiangsu Libert's Revenue for the three months ended in Sep. 2024 was ¥793 Mil. Therefore, Jiangsu Libert's Gross Margin % for the quarter that ended in Sep. 2024 was 20.25%.

Warning Sign:

Jiangsu Libert Inc gross margin has been in long-term decline. The average rate of decline per year is -2%.


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

SHSE:605167' s Gross Margin % Range Over the Past 10 Years
Min: 14.54   Med: 17.2   Max: 19.8
Current: 16.22


During the past 7 years, the highest Gross Margin % of Jiangsu Libert was 19.80%. The lowest was 14.54%. And the median was 17.20%.

SHSE:605167's Gross Margin % is ranked worse than
78.33% of 2935 companies
in the Industrial Products industry
Industry Median: 26.72 vs SHSE:605167: 16.22

Jiangsu Libert had a gross margin of 20.25% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Jiangsu Libert was -2.00% per year.


Jiangsu Libert Gross Margin % Historical Data

The historical data trend for Jiangsu Libert'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.

Jiangsu Libert Gross Margin % Chart

Jiangsu Libert Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 18.66 17.29 14.95 19.80 14.54

Jiangsu Libert 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 15.15 12.27 13.03 18.23 20.25

Competitive Comparison of Jiangsu Libert's Gross Margin %

For the Specialty Industrial Machinery subindustry, Jiangsu Libert'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.


Jiangsu Libert's Gross Margin % Distribution in the Industrial Products Industry

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

* The bar in red indicates where Jiangsu Libert's Gross Margin % falls into.



Jiangsu Libert Gross Margin % Calculation

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

Jiangsu Libert'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 )
=471.4 / 3242.343
=(Revenue - Cost of Goods Sold) / Revenue
=(3242.343 - 2770.983) / 3242.343
=14.54 %

Jiangsu Libert'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 )
=160.6 / 793.362
=(Revenue - Cost of Goods Sold) / Revenue
=(793.362 - 632.722) / 793.362
=20.25 %

* 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.


Jiangsu Libert  (SHSE:605167) 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

Jiangsu Libert had a gross margin of 20.25% 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.


Jiangsu Libert Gross Margin % Related Terms

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Jiangsu Libert Business Description

Traded in Other Exchanges
N/A
Address
No. 2667, Yanjiang Road, Jiangsu Yangtze River Heavy Equipment Industrial Park, Jiangsu Province, Zhangjiagang, CHN, 215636
Jiangsu Libert Inc is engaged in the design and manufacture of industrial modules.
Executives
Huo Ji Liang Supervisors

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