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SXTC (China SXT Pharmaceuticals) Gross Margin % : 26.90% (As of Mar. 2024)


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What is China SXT Pharmaceuticals Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. China SXT Pharmaceuticals's Gross Profit for the six months ended in Mar. 2024 was $0.27 Mil. China SXT Pharmaceuticals's Revenue for the six months ended in Mar. 2024 was $0.99 Mil. Therefore, China SXT Pharmaceuticals's Gross Margin % for the quarter that ended in Mar. 2024 was 26.90%.

Warning Sign:

China SXT Pharmaceuticals Inc gross margin has been in long-term decline. The average rate of decline per year is -18.2%.


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

SXTC' s Gross Margin % Range Over the Past 10 Years
Min: 21.6   Med: 48.29   Max: 65.77
Current: 28.72


During the past 8 years, the highest Gross Margin % of China SXT Pharmaceuticals was 65.77%. The lowest was 21.60%. And the median was 48.29%.

SXTC's Gross Margin % is ranked worse than
79.67% of 969 companies
in the Drug Manufacturers industry
Industry Median: 47.02 vs SXTC: 28.72

China SXT Pharmaceuticals had a gross margin of 26.90% for the quarter that ended in Mar. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for China SXT Pharmaceuticals was -18.20% per year.


China SXT Pharmaceuticals Gross Margin % Historical Data

The historical data trend for China SXT Pharmaceuticals'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.

China SXT Pharmaceuticals Gross Margin % Chart

China SXT Pharmaceuticals Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Gross Margin %
Get a 7-Day Free Trial 52.38 59.44 48.12 21.60 28.73

China SXT Pharmaceuticals Semi-Annual Data
Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 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 58.92 7.45 44.17 30.64 26.90

Competitive Comparison of China SXT Pharmaceuticals's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, China SXT Pharmaceuticals'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.


China SXT Pharmaceuticals's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, China SXT Pharmaceuticals's Gross Margin % distribution charts can be found below:

* The bar in red indicates where China SXT Pharmaceuticals's Gross Margin % falls into.



China SXT Pharmaceuticals Gross Margin % Calculation

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

China SXT Pharmaceuticals's Gross Margin for the fiscal year that ended in Mar. 2024 is calculated as

Gross Margin % (A: Mar. 2024 )=Gross Profit (A: Mar. 2024 ) / Revenue (A: Mar. 2024 )
=0.6 / 1.928
=(Revenue - Cost of Goods Sold) / Revenue
=(1.928 - 1.374) / 1.928
=28.73 %

China SXT Pharmaceuticals'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 )
=0.3 / 0.989
=(Revenue - Cost of Goods Sold) / Revenue
=(0.989 - 0.723) / 0.989
=26.90 %

* 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.


China SXT Pharmaceuticals  (NAS:SXTC) 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

China SXT Pharmaceuticals had a gross margin of 26.90% for the quarter that ended in Mar. 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.


China SXT Pharmaceuticals Gross Margin % Related Terms

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China SXT Pharmaceuticals Business Description

Traded in Other Exchanges
Address
No. 178 Taidong Road North, Jiangsu, Taizhou, CHN, 225300
China SXT Pharmaceuticals Inc is a pharmaceutical company that is focused on the research, development, manufacture, marketing, and sales of Traditional Chinese Medicine Pieces (TCMP), particularly, TCMP (Directed-oral TCMP, and After-soaking TCMP) which is a sort of Traditional Chinese Medicine (TCM) that has been processed to be ready for use without decoction. Geographically, the firm generates its revenue from the People's Republic of China.