GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Lanzhou Huanghe Enterprise Co Ltd (SZSE:000929) » Definitions » Gross Margin %

Lanzhou Huanghe Enterprise Co (SZSE:000929) Gross Margin % : 26.88% (As of Sep. 2024)


View and export this data going back to 1999. Start your Free Trial

What is Lanzhou Huanghe Enterprise Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lanzhou Huanghe Enterprise Co's Gross Profit for the three months ended in Sep. 2024 was ¥16.9 Mil. Lanzhou Huanghe Enterprise Co's Revenue for the three months ended in Sep. 2024 was ¥62.9 Mil. Therefore, Lanzhou Huanghe Enterprise Co's Gross Margin % for the quarter that ended in Sep. 2024 was 26.88%.

Warning Sign:

Lanzhou Huanghe Enterprise Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -13.2%.


The historical rank and industry rank for Lanzhou Huanghe Enterprise Co's Gross Margin % or its related term are showing as below:

SZSE:000929' s Gross Margin % Range Over the Past 10 Years
Min: 11.64   Med: 25.64   Max: 39.66
Current: 11.64


During the past 13 years, the highest Gross Margin % of Lanzhou Huanghe Enterprise Co was 39.66%. The lowest was 11.64%. And the median was 25.64%.

SZSE:000929's Gross Margin % is ranked worse than
93.78% of 209 companies
in the Beverages - Alcoholic industry
Industry Median: 39.6 vs SZSE:000929: 11.64

Lanzhou Huanghe Enterprise Co had a gross margin of 26.88% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Lanzhou Huanghe Enterprise Co was -13.20% per year.


Lanzhou Huanghe Enterprise Co Gross Margin % Historical Data

The historical data trend for Lanzhou Huanghe Enterprise 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.

Lanzhou Huanghe Enterprise Co Gross Margin % Chart

Lanzhou Huanghe Enterprise Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.90 16.29 18.59 15.76 15.16

Lanzhou Huanghe Enterprise Co 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 26.35 -16.74 10.81 16.50 26.88

Competitive Comparison of Lanzhou Huanghe Enterprise Co's Gross Margin %

For the Beverages - Brewers subindustry, Lanzhou Huanghe Enterprise 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.


Lanzhou Huanghe Enterprise Co's Gross Margin % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Lanzhou Huanghe Enterprise Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lanzhou Huanghe Enterprise Co's Gross Margin % falls into.



Lanzhou Huanghe Enterprise Co Gross Margin % Calculation

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

Lanzhou Huanghe Enterprise 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 )
=36.6 / 241.244
=(Revenue - Cost of Goods Sold) / Revenue
=(241.244 - 204.664) / 241.244
=15.16 %

Lanzhou Huanghe Enterprise 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 )
=16.9 / 62.883
=(Revenue - Cost of Goods Sold) / Revenue
=(62.883 - 45.983) / 62.883
=26.88 %

* 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.


Lanzhou Huanghe Enterprise Co  (SZSE:000929) 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

Lanzhou Huanghe Enterprise Co had a gross margin of 26.88% 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.


Lanzhou Huanghe Enterprise Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Lanzhou Huanghe Enterprise Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Lanzhou Huanghe Enterprise Co Business Description

Traded in Other Exchanges
N/A
Address
No. 219 Qingyang Road, Jinyun Building, 22 Floor, Lanzhou, Gansu, CHN, 730030
Lanzhou Huanghe Enterprise Co Ltd is a China-based company mainly engaged in the production, processing, and sales of beer, beverage, barley, malt, and forage. It sells its products under the brand names of Huanghe and Qinghaihu. The company is also engaged in the packaging and printing business.
Executives
Yang Shi Wen Director
Yang Ji Qiang Director
Yang Shi Jiang Director
Yang Shi Lian Director
Bao Guo Xian Director
Niu Dong Ji Directors, executives
Bai Kun Director, within half a year of separation

Lanzhou Huanghe Enterprise Co Headlines

No Headlines