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Beijing Ultrapower Software Co (SZSE:300002) Gross Margin % : 63.65% (As of Mar. 2024)


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What is Beijing Ultrapower Software Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Beijing Ultrapower Software Co's Gross Profit for the three months ended in Mar. 2024 was ¥947 Mil. Beijing Ultrapower Software Co's Revenue for the three months ended in Mar. 2024 was ¥1,488 Mil. Therefore, Beijing Ultrapower Software Co's Gross Margin % for the quarter that ended in Mar. 2024 was 63.65%.

Warning Sign:

Beijing Ultrapower Software Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.3%.


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

SZSE:300002' s Gross Margin % Range Over the Past 10 Years
Min: 36.73   Med: 61.31   Max: 71.22
Current: 62.71


During the past 13 years, the highest Gross Margin % of Beijing Ultrapower Software Co was 71.22%. The lowest was 36.73%. And the median was 61.31%.

SZSE:300002's Gross Margin % is ranked better than
70.64% of 2636 companies
in the Software industry
Industry Median: 41.84 vs SZSE:300002: 62.71

Beijing Ultrapower Software Co had a gross margin of 63.65% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Beijing Ultrapower Software Co was -2.30% per year.


Beijing Ultrapower Software Co Gross Margin % Historical Data

The historical data trend for Beijing Ultrapower Software 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.

Beijing Ultrapower Software Co Gross Margin % Chart

Beijing Ultrapower Software 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 65.00 60.24 62.23 60.39 62.73

Beijing Ultrapower Software Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 63.97 62.18 63.32 61.93 63.65

Competitive Comparison of Beijing Ultrapower Software Co's Gross Margin %

For the Software - Application subindustry, Beijing Ultrapower Software 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.


Beijing Ultrapower Software Co's Gross Margin % Distribution in the Software Industry

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

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



Beijing Ultrapower Software Co Gross Margin % Calculation

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

Beijing Ultrapower Software 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 )
=3740.2 / 5962.244
=(Revenue - Cost of Goods Sold) / Revenue
=(5962.244 - 2222.004) / 5962.244
=62.73 %

Beijing Ultrapower Software Co's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=947.3 / 1488.183
=(Revenue - Cost of Goods Sold) / Revenue
=(1488.183 - 540.902) / 1488.183
=63.65 %

* 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.


Beijing Ultrapower Software Co  (SZSE:300002) 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

Beijing Ultrapower Software Co had a gross margin of 63.65% for the quarter that ended in Mar. 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.


Beijing Ultrapower Software Co Gross Margin % Related Terms

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


Beijing Ultrapower Software Co (SZSE:300002) Business Description

Traded in Other Exchanges
N/A
Address
Building 1 on the 13th Academy Building, Beiyuan, Chaoyang District, 22 North Star Taiyue, Beijing, CHN, 100107
Beijing Ultrapower Software Co Ltd is an IT operations and maintenance service provider in China. It offers enterprise-oriented IT consulting, solutions, software products, and project implementing and operation services. The company focuses on the use of information technology to promote industrial development and social progress and improve people's work and life quality.
Executives
Wang Ning Director
Hu Jia Ming Directors, Directors, and Executives
Li Li Director
Di Yi Bing Directors, executives
Gao Feng Executives
Huang Song Lang Director
Zhang Qian Shan Directors, executives
Mao Da Wei Directors, executives
Hao Yan Supervisors
Liang De Xing Executives
Zhu Jian Song Executives
Wan Neng Directors, executives
Qi Qiang Director
Xu Peng Executives
Xu Si Ping Director

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