GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Shandong Sinobioway Biomedicine Co Ltd (SZSE:002581) » Definitions » Gross Margin %

Shandong Sinobioway Biomedicine Co (SZSE:002581) Gross Margin % : 79.40% (As of Sep. 2024)


View and export this data going back to 2011. Start your Free Trial

What is Shandong Sinobioway Biomedicine Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Shandong Sinobioway Biomedicine Co's Gross Profit for the three months ended in Sep. 2024 was ¥82.5 Mil. Shandong Sinobioway Biomedicine Co's Revenue for the three months ended in Sep. 2024 was ¥103.9 Mil. Therefore, Shandong Sinobioway Biomedicine Co's Gross Margin % for the quarter that ended in Sep. 2024 was 79.40%.

Warning Sign:

Shandong Sinobioway Biomedicine Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.7%.


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

SZSE:002581' s Gross Margin % Range Over the Past 10 Years
Min: 76.33   Med: 80.49   Max: 88.45
Current: 79.85


During the past 13 years, the highest Gross Margin % of Shandong Sinobioway Biomedicine Co was 88.45%. The lowest was 76.33%. And the median was 80.49%.

SZSE:002581's Gross Margin % is ranked better than
92.68% of 970 companies
in the Drug Manufacturers industry
Industry Median: 46.94 vs SZSE:002581: 79.85

Shandong Sinobioway Biomedicine Co had a gross margin of 79.40% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Shandong Sinobioway Biomedicine Co was -1.70% per year.


Shandong Sinobioway Biomedicine Co Gross Margin % Historical Data

The historical data trend for Shandong Sinobioway Biomedicine 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.

Shandong Sinobioway Biomedicine Co Gross Margin % Chart

Shandong Sinobioway Biomedicine 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 86.94 80.38 78.69 78.66 80.60

Shandong Sinobioway Biomedicine 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 81.51 78.52 80.13 80.99 79.40

Competitive Comparison of Shandong Sinobioway Biomedicine Co's Gross Margin %

For the Drug Manufacturers - Specialty & Generic subindustry, Shandong Sinobioway Biomedicine 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.


Shandong Sinobioway Biomedicine Co's Gross Margin % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Shandong Sinobioway Biomedicine Co's Gross Margin % distribution charts can be found below:

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



Shandong Sinobioway Biomedicine Co Gross Margin % Calculation

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

Shandong Sinobioway Biomedicine 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 )
=346.4 / 429.79
=(Revenue - Cost of Goods Sold) / Revenue
=(429.79 - 83.395) / 429.79
=80.60 %

Shandong Sinobioway Biomedicine 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 )
=82.5 / 103.928
=(Revenue - Cost of Goods Sold) / Revenue
=(103.928 - 21.405) / 103.928
=79.40 %

* 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.


Shandong Sinobioway Biomedicine Co  (SZSE:002581) 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

Shandong Sinobioway Biomedicine Co had a gross margin of 79.40% for the quarter that ended in Sep. 2024 => 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.


Shandong Sinobioway Biomedicine Co Gross Margin % Related Terms

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


Shandong Sinobioway Biomedicine Co Business Description

Traded in Other Exchanges
N/A
Address
No.18, Chaoyang Road, Zhangdian District, Zibo City, Shandong, CHN, 255068
Shandong Sinobioway Biomedicine Co Ltd is engaged in the research, development, manufacturing and marketing of trimethyl orthoformate and triethyl orthoformate.
Executives
He Xun Executives
Yang Xiao Min Director
Yu Tong Jie Executives
Yan Li Director

Shandong Sinobioway Biomedicine Co Headlines

No Headlines