GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Hota Industrial Mfg Co Ltd (TPE:1536) » Definitions » Gross Margin %

Hota Industrial Mfg Co (TPE:1536) Gross Margin % : 7.90% (As of Dec. 2024)


View and export this data going back to 2001. Start your Free Trial

What is Hota Industrial Mfg Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hota Industrial Mfg Co's Gross Profit for the three months ended in Dec. 2024 was NT$94 Mil. Hota Industrial Mfg Co's Revenue for the three months ended in Dec. 2024 was NT$1,184 Mil. Therefore, Hota Industrial Mfg Co's Gross Margin % for the quarter that ended in Dec. 2024 was 7.90%.

Warning Sign:

Hota Industrial Mfg Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -13.8%.


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

TPE:1536' s Gross Margin % Range Over the Past 10 Years
Min: 11.81   Med: 26.59   Max: 36.98
Current: 11.81


During the past 13 years, the highest Gross Margin % of Hota Industrial Mfg Co was 36.98%. The lowest was 11.81%. And the median was 26.59%.

TPE:1536's Gross Margin % is ranked worse than
79.84% of 1285 companies
in the Vehicles & Parts industry
Industry Median: 19.98 vs TPE:1536: 11.81

Hota Industrial Mfg Co had a gross margin of 7.90% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Hota Industrial Mfg Co was -13.80% per year.


Hota Industrial Mfg Co Gross Margin % Historical Data

The historical data trend for Hota Industrial Mfg 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.

Hota Industrial Mfg Co Gross Margin % Chart

Hota Industrial Mfg 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 22.51 25.15 23.10 17.29 11.81

Hota Industrial Mfg Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 12.36 16.08 11.07 11.44 7.90

Competitive Comparison of Hota Industrial Mfg Co's Gross Margin %

For the Auto Parts subindustry, Hota Industrial Mfg 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.


Hota Industrial Mfg Co's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Hota Industrial Mfg Co's Gross Margin % distribution charts can be found below:

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


;
;

Hota Industrial Mfg Co Gross Margin % Calculation

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

Hota Industrial Mfg 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 )
=681.7 / 5774.47
=(Revenue - Cost of Goods Sold) / Revenue
=(5774.47 - 5092.735) / 5774.47
=11.81 %

Hota Industrial Mfg Co's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=93.6 / 1184.08
=(Revenue - Cost of Goods Sold) / Revenue
=(1184.08 - 1090.484) / 1184.08
=7.90 %

* 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.


Hota Industrial Mfg Co  (TPE:1536) 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

Hota Industrial Mfg Co had a gross margin of 7.90% for the quarter that ended in Dec. 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.


Hota Industrial Mfg Co Gross Margin % Related Terms

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


Hota Industrial Mfg Co Business Description

Traded in Other Exchanges
N/A
Address
No. 12, Keya Road, Daya District, Taichung, TWN, 42881
Hota Industrial Mfg Co Ltd is a Taiwan based company. The company has three divisions which includes transmission, machinery, and medical. The machinery division is mainly involved in gear machinery manufacturing. The gear machine product range includes gear shaving machine, gear deburring machine, gear hobbing machine. The transmission division portfolio includes planetary gear set, transfer case components, transmission shaft, hydraulic pump gears, input and output shafts, motorcycles rear shafts, and transmissions gear set, among others. The medical division offers electric wheelchairs and electric scooters. It generates operating revenue from the manufacturing and trading of related products for vehicle transmission parts.

Hota Industrial Mfg Co Headlines

No Headlines