Xi'an Catering Co (SZSE:000721) Gross Margin % : 4.66% (As of Mar. 2024)

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What is Xi'an Catering Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Xi'an Catering Co's Gross Profit for the three months ended in Mar. 2024 was ¥8.5 Mil. Xi'an Catering Co's Revenue for the three months ended in Mar. 2024 was ¥182.5 Mil. Therefore, Xi'an Catering Co's Gross Margin % for the quarter that ended in Mar. 2024 was 4.66%.

Warning Sign:

Xi'an Catering Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -15.4%.

The historical rank and industry rank for Xi'an Catering Co's Gross Margin % or its related term are showing as below:

SZSE:000721' s Gross Margin % Range Over the Past 10 Years
Min: 12.67 Med: 33.01 Max: 37.95
Current: 15.5

During the past 13 years, the highest Gross Margin % of Xi'an Catering Co was 37.95%. The lowest was 12.67%. And the median was 33.01%.

SZSE:000721's Gross Margin % is ranked worse than
92.08% of 341 companies
in the Restaurants industry
Industry Median: 47.42 vs SZSE:000721: 15.50

Xi'an Catering Co had a gross margin of 4.66% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Xi'an Catering Co was -15.40% per year.

Xi'an Catering Co Gross Margin % Historical Data

The historical data trend for Xi'an Catering 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.

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Xi'an Catering Co Gross Margin % Chart

Xi'an Catering Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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32.23

28.67

19.87

12.67

19.75

Xi'an Catering Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															23.09	29.91	29.05	-3.74	4.66

Competitive Comparison of Xi'an Catering Co's Gross Margin %

For the Restaurants subindustry, Xi'an Catering 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.

Xi'an Catering Co's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Xi'an Catering Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Xi'an Catering Co's Gross Margin % falls into.

Xi'an Catering Co Gross Margin % Calculation

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

Xi'an Catering 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 )
	=	154.1	/	780.17
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(780.17 - 626.103)	/	780.17
	=	19.75 %

Xi'an Catering Co'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 )
	=	8.5	/	182.495
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(182.495 - 173.992)	/	182.495
	=	4.66 %

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.

Xi'an Catering Co (SZSE:000721) 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

Xi'an Catering Co had a gross margin of 4.66% 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.

Xi'an Catering Co Gross Margin % Related Terms

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Xi'an Catering Co (SZSE:000721) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Xi'an Catering Co Ltd (SZSE:000721) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.27, West Section of South 2nd Ring, 6th Floor, Xi'an Tourism Building, Beilin District, Shaanxi, Xi'an, CHN, 710061

Website

http://www.xcsg.com

Xi'an Catering Co Ltd a China-based company, engaged in providing catering services and also has a food processing segment.

Executives

Zhu Yi Dong	Supervisors
Li Hui Qin	Executives
Zhang Xin Yu	Executives
Zhang Zhang An	Directors, executives
Guo Yang Tuan	Directors, Directors, and Executives
Wu Wen Hua	Directors, executives
Zhang Yong Hong	Executives
Zhang Nai Kuan	Executives, supervisors
Hu Chang Min	Director
Li Yi Wei	Executives, supervisors
Zheng Li	Director

Xi'an Catering Co (SZSE:000721) Headlines

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