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Cheil Industries (XKRX:001300) Gross Margin % : 4.68% (As of Mar. 2016)


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What is Cheil Industries Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Cheil Industries's Gross Profit for the three months ended in Mar. 2016 was ₩213,412 Mil. Cheil Industries's Revenue for the three months ended in Mar. 2016 was ₩4,559,672 Mil. Therefore, Cheil Industries's Gross Margin % for the quarter that ended in Mar. 2016 was 4.68%.

Warning Sign:

Samsung C&T Corp. gross margin has been in long term decline. The average rate of decline per year is -11.60%.


The historical rank and industry rank for Cheil Industries's Gross Margin % or its related term are showing as below:

XKRX:001300' s Gross Margin % Range Over the Past 10 Years
Min: 10.83   Med: 18.39   Max: 38.88
Current: 10.83


During the past 3 years, the highest Gross Margin % of Cheil Industries was 38.88%. The lowest was 10.83%. And the median was 18.39%.

XKRX:001300's Gross Margin % is not ranked
in the Chemicals industry.
Industry Median: 22.7 vs XKRX:001300: 10.83

Cheil Industries had a gross margin of 4.68% for the quarter that ended in Mar. 2016 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Cheil Industries was -11.60% per year.


Cheil Industries Gross Margin % Historical Data

The historical data trend for Cheil Industries'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.

Cheil Industries Gross Margin % Chart

Cheil Industries Annual Data
Trend Dec13 Dec14 Dec15
Gross Margin %
18.39 38.88 16.03

Cheil Industries Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16
Gross Margin % Get a 7-Day Free Trial Premium Member Only 35.33 35.29 16.08 10.01 4.68

Competitive Comparison of Cheil Industries's Gross Margin %

For the Chemicals subindustry, Cheil Industries'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.


Cheil Industries's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Cheil Industries's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Cheil Industries's Gross Margin % falls into.



Cheil Industries Gross Margin % Calculation

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

Cheil Industries's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )=Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=1424123.8 / 8885125.467
=(Revenue - Cost of Goods Sold) / Revenue
=(8885125.467 - 7461001.692) / 8885125.467
=16.03 %

Cheil Industries's Gross Margin for the quarter that ended in Mar. 2016 is calculated as


Gross Margin % (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=213411.8 / 4559672.269
=(Revenue - Cost of Goods Sold) / Revenue
=(4559672.269 - 4346260.507) / 4559672.269
=4.68 %

* 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.


Cheil Industries  (XKRX:001300) 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

Cheil Industries had a gross margin of 4.68% for the quarter that ended in Mar. 2016 => 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.


Cheil Industries Gross Margin % Related Terms

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Cheil Industries (XKRX:001300) Business Description

Traded in Other Exchanges
N/A
Address
Samsung C&T Corp was founded in 1938. The Company was formed from the merger of Samsung C&T Corporation ('Samsung C&T') and Cheil Industries Inc. The Company operates four business including engineering & construction, trading & investment, fashion and resort & construction. In the engineering & construction business it provides services including planning, design, purchasing, construction and management of buildings, civil infrastructure, power plants and housing & developments. The Company's trading & investment business includes trading of industrial commodities such as chemicals, steel and natural resources, and organizing projects such as power plant, renewable energy and infrastructure development. The Company also trades chemicals and industrial materials including fertilizer, mining chemicals, methanol and electronic materials, steel products including hot rolled steel, plate and automotive steel, and natural resources including coal and copper. It also operates palm plantation. The Company's fashion business is engaged in manufacturing and designing fashion products and offers brands including 8 Seconds, 10 Corso Como Seoul, Aann Demeulemeester, Beanpole Men, Beanpole Ladies, Beanpole Kids, Beanpole Golf, Beanpole Accessory, Beanpole Outdoor, Balmain, Beaker, Colombo, Comme Des Garcons, Galaxy, Giuseppe Zanotti, Kuho, Lansmere, Lebeige and Valextra. The Company's resort business is engaged in operating Everland & Caribbean Bay resorts and Golf Clubs; and also engaged in construction, plant, and landscaping businesses.

Cheil Industries (XKRX:001300) Headlines

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