* 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 Lingyi Itech (Guangdong) Co's Gross Margin %
For the Electronic Components subindustry, Lingyi Itech (Guangdong) 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.
Lingyi Itech (Guangdong) Co's Gross Margin % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Lingyi Itech (Guangdong) Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lingyi Itech (Guangdong) Co's Gross Margin % falls into.
Lingyi Itech (Guangdong) Co Gross Margin % Calculation
* 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.
Lingyi Itech (Guangdong) Co (SZSE:002600) 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
Lingyi Itech (Guangdong) Co had a gross margin of 15.02% for the quarter that ended in Jun. 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.
Lingyi Itech (Guangdong) Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Lingyi Itech (Guangdong) Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lingyi Itech (Guangdong) Co Ltd is a Chinese company that manufactures magnetic materials, precision components and modules, precision structural parts, liquid crystal display modules, capacitive touch screens, wire and cable, motors, trade logistics, and supply chain finance. Its products are used in consumer electronics, automotive control, smart security, smart wear, smart home, new materials, new energy vehicles and other fields.
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