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Iflytek Co (SZSE:002230) Gross Margin % : 40.18% (As of Mar. 2025)


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What is Iflytek Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Iflytek Co's Gross Profit for the three months ended in Mar. 2025 was ¥1,872 Mil. Iflytek Co's Revenue for the three months ended in Mar. 2025 was ¥4,658 Mil. Therefore, Iflytek Co's Gross Margin % for the quarter that ended in Mar. 2025 was 40.18%.

Warning Sign:

Iflytek Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.6%.


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

SZSE:002230' s Gross Margin % Range Over the Past 10 Years
Min: 40.83   Med: 45.57   Max: 51.38
Current: 42.85


During the past 13 years, the highest Gross Margin % of Iflytek Co was 51.38%. The lowest was 40.83%. And the median was 45.57%.

SZSE:002230's Gross Margin % is ranked better than
51.82% of 2644 companies
in the Software industry
Industry Median: 41.385 vs SZSE:002230: 42.85

Iflytek Co had a gross margin of 40.18% for the quarter that ended in Mar. 2025 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Iflytek Co was -1.60% per year.


Iflytek Co Gross Margin % Historical Data

The historical data trend for Iflytek 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.

Iflytek Co Gross Margin % Chart

Iflytek Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.12 41.13 40.83 42.66 42.63

Iflytek Co Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 38.06 41.56 40.90 46.44 40.18

Competitive Comparison of Iflytek Co's Gross Margin %

For the Software - Application subindustry, Iflytek 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.


Iflytek Co's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Iflytek Co's Gross Margin % distribution charts can be found below:

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


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Iflytek Co Gross Margin % Calculation

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

Iflytek Co's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=9951.9 / 23343.093
=(Revenue - Cost of Goods Sold) / Revenue
=(23343.093 - 13391.165) / 23343.093
=42.63 %

Iflytek Co's Gross Margin for the quarter that ended in Mar. 2025 is calculated as


Gross Margin % (Q: Mar. 2025 )=Gross Profit (Q: Mar. 2025 ) / Revenue (Q: Mar. 2025 )
=1871.6 / 4657.816
=(Revenue - Cost of Goods Sold) / Revenue
=(4657.816 - 2786.251) / 4657.816
=40.18 %

* 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.


Iflytek Co  (SZSE:002230) 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

Iflytek Co had a gross margin of 40.18% for the quarter that ended in Mar. 2025 => Durable 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.


Iflytek Co Gross Margin % Related Terms

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


Iflytek Co Business Description

Traded in Other Exchanges
N/A
Address
No. 666, Wangjiang Road West, National Intelligent Speech High-tech Industrializ, Anhui Province, Hefei, CHN, 230088
Iflytek Co Ltd is a China-based company, principally engaged in the software and information technology (IT) service businesses. The company's business includes intelligent application systems, software for voice and speech recognition and conversion, computer software design service, and computer programming service.
Executives
Wu Xiao Ru Directors, executives
Jiang Tao Directors, executives
Nie Xiao Lin Directors, executives
Liu Qing Feng Director
Shu Hua Ying Independent director
Hu Yu Directors, executives
Chen Tao Directors, executives
Du Lan Executives
Zhang Shao Bing Executives
Zhang Lan Supervisors
Zhao Hui Fang Independent director
Xu Yu Lin Supervisors
Yan Jun Supervisors
Li Jian Independent director
Yang Rui Securities Affairs Representative

Iflytek Co Headlines

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