SZSE:002441's Gross Margin % is ranked worse than 90.72% of 2942
companies
in the Industrial Products industry
Industry Median: 26.47
vs SZSE:002441: 9.42
Zhongyeda Electric Co had a gross margin of 15.53% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Zhongyeda Electric Co was -2.70% per year.
Zhongyeda Electric Co Gross Margin % Historical Data
The historical data trend for Zhongyeda Electric 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.
Competitive Comparison of Zhongyeda Electric Co's Gross Margin %
For the Specialty Industrial Machinery subindustry, Zhongyeda Electric 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.
Zhongyeda Electric Co's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Zhongyeda Electric Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Zhongyeda Electric Co's Gross Margin % falls into.
* 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.
Zhongyeda Electric Co (SZSE:002441) 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
Zhongyeda Electric Co had a gross margin of 15.53% 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.
Zhongyeda Electric Co Gross Margin % Related Terms
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Zhongyeda Electric Co (SZSE:002441) Business Description
Zhongyeda Electric Co Ltd is a distributor of industrial electrical products. The company's main business is the distribution of industrial electrical component products of contracted suppliers through its own sales network, as well as the production and sales of system integration products and complete manufacturing products. Its products include low-voltage electrical products, medium voltage electrical products, industrial control products and others.
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